Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 8, 2009

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: +44bp

It is beginning to look at lot more like the next step of the prior uptrend with the momentum mortgage backed securities are seeing right now.  Yesterday saw MBS prices improve 28 basis points, but off their highs.  This morning, however, global economic fears were fueled by several issues, including remaining concerns over the Dubai debt situation and the concern over global debt as Greece saw its credit rating dropped.  These global economic fears are bringing down stocks at the moment and that bodes well for mortgage bond pricing, and thus mortgage rates.

Another day absent of data plays, leaving Treasury Auctions on the front lines for market movement.  The one to watch today is the 3-year Treasury Note, which will be released at 1:00.  Yesterday’s 3-month and 6-month T-Bill auctions went well with continued strong demand, allowing MBS prices to climb.  Big Ben Bernanke’s speech yesterday warned people to not presume the economic recovery will be able to be self-sustaining, though a modest recovery can be expected for now.  Consumer Credit showed a less than expected contraction, though the credit markets are still tight.  Banks cut back on credit cards, but have extended credit on auto loans which caused the illusion, so-to-speak.

What does this mean for Florida Mortgage Rates?  Mortgage rates should be edging lower for the short-term, and the long-term picture is beginning to show signs of life for lower mortgage rates, though the picture is still not solid at the moment.

Leave a Comment

Previous post:

Next post: