Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 5, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +28bp

Mortgage backed securities appear to be doing that corrective move still as they closed yesterday up 25 basis points and are up 28 more this morning.  This move should last at least another 12 or so basis points, and may even go up to their 200-day MA, up 34 basis points before turning lower again.  If they do either one of these moves, a solid retracement will have been completed and the downtrend can resume without issues.

Part of the reason for the move higher was the incredibly strong 3-month and 6-month T-Bill auctions yesterday which saw the highest bid/cover ratios ever.  That means the investors returning from their “vacations” think the Treasuries (and thus MBS prices) are well oversold and a great deal right now.

Data plays for today are only minor, so this momentum will likely continue through the day.  Pending Home Sales is slated to be released at 10:00 and we do have the 4-week T-Bill auction’s results slated for release at 11:30.  No Fed speeches today, though.

What does this mean for Florida Mortgage Rates?  Mortgage rates are still edging lower and will likely do so in the short-term.  The long-term outlook still favors higher mortgage rates and that picture is unlikely to change for a while, if ever.

Leave a Comment

Previous post:

Next post: