Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 18, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage backed securities now appear to have completed a solid retracement and that means that this morning’s flat line may be the beginning of the next leg lower in MBS prices.

No data is scheduled for today, but stock traders will be active today as it is a Quadruple Witching day and they will need to close out positions before the day is over.  Additionally, news may be an active player in the markets, such as the Climate Change Summit and this morning’s data showing German business confidence now at 17-month high.

With yesterday’s 60 point climb, we are now about 50% into the last move lower and that means a solid retracement pattern.  The next day or two will confirm this move as merely a retracement or MBS prices will edge higher still, though I am betting this is the low point in mortgage rates for the foreseeable future.  Stochastic indications have moved out of the oversold spectrum, though they are still on the bottom side of the scale.  The key will be whether or not the 50-day MA can hold as support.

What does this mean for Florida Mortgage Rates?  We are likely at the lowest mortgage rates for the foreseeable future, though slightly better rates may be seen.  The outlook remains most favorable for mortgage rates moving higher.

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