Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 17, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +28bp

Mortgage backed securities are well into their retracement today as they failed to move much yesterday by the end of the day, but were up 41 basis points currently as stocks tumble.  Despite the fall from their highs, MBS prices should move higher at least until they have a solid retracement completed.

The Fed didn’t throw any real surprises into the mix yesterday as rates remained unchanged.  The Fed essentially stated the same thing they did in their last meeting and left their Policy Statement essentially unchanged…slow recovery, commitment to keep rates low for extended period and slowly ease purchases of MBS into 1st quarter 2010.  Jobless Claims were slightly higher than expected at 480K versus 465K.  Leading Economic Indicators and the Philadelphia Fed survey are due out at 10:00 and we may see some movement as a result.  This afternoon, Richard Fisher will be speaking on the global economy.  Tomorrow does not hold any data, but it is a Quadruple Witching day so stocks could get interesting and the results could overflow into the mortgage bond market.

What does this mean for Florida Mortgage Rates?  Same as yesterday, short-term allows for floating and possibly getting better rates than today.  The long-term outlook still favors higher mortgage rates, so locking will be back in play soon.

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