Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 3, 2009

Locking Stance: LOCKING    Mortgage Bonds: –19bp

Mortgage backed securities held fairly steady yesterday, ending the day down just 6 basis points.  This morning, they opened lower on the heels of news from Bank of America regarding their $45 billion repayment plan, along with the expectations of a lower than expected Jobless Claims report.

Jobless Claims were just released and came in at 457K versus expectations of 485K, bringing the 4-week average to 496.5K, and continuing claims fell to 5.423M.  Productivity and Costs were also released, showing Unit Labor Costs were –2.5% (versus estimates of –4.2%) and Nonfarm Productivity was up 8.1% (versus estimates of 8.5%).  The Productivity and Costs report is released quarterly, hence the relatively large percentage changes compared to the monthly reports, but there both of these results do not favor MBS prices.  The Treasury will announce the next 30-year T-Bond auction at 9:00 which could impact the markets, followed by the ISM Services Index at 10:00, followed by even more Treasury announcements at 11:00, including the 3-year and 10-year T-Notes.  Eric Rosengren will be speaking at 12:30, though I doubt much market movement, if any, will result.

As I have been discussing, I expect MBS prices to drop and test their 25-day MA, which with this morning’s open looks to be a real possibility today. 

What does this mean for Florida Mortgage Rates?  Expect mortgage rates to edge higher today and the longer term outlook should solidify soon.  While I am currently expecting mortgage rates to head lower again, the picture may change in the coming days.

Leave a Comment

Previous post:

Next post: