Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 2, 2009

Locking Stance: LOCKING    Mortgage Bonds: –6bp

Mortgage backed securities fell fairly hard yesterday, ending the day down 44 basis points and around their 10-day MA.  I still feel they need to drop and test their 25-day MA before any leg higher will be seen, but they are at about their 50% retracement level of their last move higher, so they may find strength here nonetheless.

the ISM Manufacturing Index was slightly below expectations and Pending Home Sales rose, but at a slower rate.  The 4-week Treasury Bill went very well yesterday, just like all of the latest short-term Treasury auctions.  Today sees the forecaster of Friday’s “Jobs Jamboree”, which is the ADP Employment Report.  The ADP Employment Report did improve from last month as it estimates private payrolls will drop 169K.  The trend in the report is certainly higher when you look it its charts, and that may not bode well for MBS prices.  MBA Purchase Applications showed a 4.1% increase in Purchase Applications and a 1.7% increase in Refinance Applications, as 30-year loans averaged 4.79%, the lowest since May.  Crude Inventories will be out later this morning, the Beige Book will be out at 2pm and Tim Geithner is about to speak (9:30) as well.  MBS prices may make a move as the day unfolds.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady or edge higher today, though the “air” may be changing.  I will keep you posted if an update is warranted.

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