Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 30, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +25bp

Mortgage backed securities have definitely begun a retracement as they closed up 34 basis points yesterday and are climbing again today.  We are now back to the point where I changed stances and we will need to move about 47 basis points more for a solid retracement, though things could change quickly.

Consumer Confidence was almost exactly inline with expectations yesterday and the reason the rise held was the results of the 5-year T-Note auction.  The 5-year Treasury Note saw mixed results, but they were better than Monday’s 2-year T-Note results and MBS prices rose on the news.  Today will see the 7-year Treasury Note auction, so be ready for any changes around 1:00.  The MBA Purchase Applications report is being delayed until next week, so next week’s report will include two weeks of data.  We will also see Crude Inventories at 10:30 though do not expect much change at that time as the main event of the day was just released, which was the Chicago PMI.  Chicago PMI came in better than expected with a showing of 60.0 versus 54.9.  So far, there has not been much reaction to the data, which may show strength in light of unfavorable news.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower at the moment, but do not get lulled into thinking they will stay low as the overall trend remains solidly in favor of higher mortgage rates down the road.

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