Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 24, 2009

Locking Stance:  LOCKING    Mortgage Bonds: +16bp

Mortgage backed securities made a nice drive higher yesterday and are continuing that move today.  I still remain skeptical that this move will hold, thus no change in stance at the moment.  The housing market did show signs of life with the Existing Home Sales data beating expectations, actually setting a record in rate of gain, but remember it is off really low numbers to begin with (in comparison).  The Treasury Auctions yesterday went very well, including a solid show for the 2-year Treasury Note, and that is what drove MBS prices higher.

Today, data has begun to flow.  Real GDP came in inline with expectations at 2.8%, and the GDP Price Index was slightly below expectations, certainly helping mortgage bonds move higher.  The Case-Shiller Housing Price Index rose again as the Composite 10 rose to 158.61 and the Composite 20 rose to 146.51.  Both indexes have slowed their growth rate, but the good news is that the improvements are especially evident in the West and in Florida, two areas hardest hit by foreclosures.  Consumer Confidence was higher than expected, though, coming in at 49.5 versus 47.0, but still it is still low.  This afternoon will see the 5-year Treasury Note auction and the release of the FOMC Minutes, so markets may change as those are released.

What does this mean for Florida Mortgage Rates?  Mortgage rates did manage to edge lower since yesterday and are doing so again this morning, though I do not expect them to continue to do so.  The picture has changed somewhat, but mortgage rates will likely edge higher again soon, maybe even by this afternoon.

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