Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 15, 2009

Locking Stance: LOCKING    Mortgage Bonds: –22bp

Mortgage backed securities continue their fall, now testing the double layer of support at their 200-day and 100-day MAs.  With a close around this level, a retracement up to their 10-day MA would be a solid retracement, which is just above their 50-day MA at the moment.  Once that move higher, a corrective move, takes place, you may have a chance to float if you haven’t been paying attention to what I have been saying for a while or have not been able to lock as of yet.

The short-term Treasury Auctions continue to see strong demand, though last week’s long-term auctions went poorly.  Today is the start of the FOMC Meeting, with their Policy Statement to be released tomorrow at 2:15.  PPI, or Producer Price Index, was released today and is the first indication of inflation we will see, with the more important CPI, or Consumer Price Index, coming out tomorrow.  PPI came in at 1.8% overall, well above the consensus of 1.0%, bringing the overall year over year rate to 2.7%.  The Core PPI was no help for MBS Prices either as it came in at 0.5%, above the consensus of 0.2%, and brings its year over year rate to 1.2%.  The Empire State Manufacturing Survey came in at a mere 2.55, well below the consensus of 25.0, a positive for MBS prices.  As for Industrial Production, Production beat the consensus with a 0.8% (vs. 0.6%) and Capacity Utilization edged out its consensus with a 71.3% (vs. 71.2%).  There are two more short-term Treasury Auctions today and the release of the Housing Market Index, but do not expect much market movement as a result.

What does this mean for Florida Mortgage Rates?  Mortgage rates continue their climb higher, though the short-term may provide a floating opportunity for those whom have not locked yet.  The long-term trend is for higher mortgage rates.

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