Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 10, 2009

Locking Stance: LOCKING    Mortgage Bonds: –19bp

Well, things are now solidly worse with the charts completing the patterns I discussed yesterday as mortgage backed securities are failing to bounce back and are now below support at the 25-day MA.  I think it is now safe to say we are in the beginning of a downtrend and the last move higher was merely a retracement of the prior drop.

Why is all of this happening now?  Several reasons, though you can simply look to the recent Treasury Auctions as a guide.  Yesterday’s 10-year T-Note auction was weak and that was despite a lower auction size.  Today will see the 30-year T-Bond auction results, again at 1:00.  But before that, we do have some data to talk about and we will see both Elizabeth Duke and Timothy Geithner speak at 12:45.  US Treasury Secretary Tim Geithner testifies before Congressional Oversight Panel on TARP in Washington while Federal Reserve Gov. Elizabeth Duke speech is to Chicago Fed’s mortgage foreclosure policy conference in Chicago.

Data plays today were the weekly Jobless Claims, along with the Balance of Trade (or International Trade report.  Jobless Claims were higher than expected, at 474K versus 460K, though the 4-week moving average is now at 473.75K and continuing claims fell sharply.  The Balance of Trade came in at $-32.9 B, above expectations of $-36.4 B, and continues the uptrend.  Not much else to watch for today besides the speeches and, most importantly, the 30-year T-Bond auction, which may prove to be another weak auction.  Tomorrow will be a big data day.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging higher and will likely do so for the foreseeable future.  The outlook is clearing up and does not bode well for lower mortgage rates.

Leave a Comment

Previous post:

Next post: