Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 11, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +21bp

First off, as you hopefully read in my report last week, the weekly Mortgage Market Update I do at Lenderama was deleted without a backup copy saved.  This week’s Mortgage Market Update is going to be delayed, but I will provide a link to it once I have it available, so check back here later today or tomorrow for the full week’s forecast.

As for mortgage backed securities, they may have found new life as they are currently higher today, having bounced off their 10-day MA and possibly even breaking the downtrend.  One possible reason is that the Fed knows traders like seeing positive chart patterns, so why not create one?  In simpler terms, they Fed may be buying heavily today, so we still have to wait and see if a trend change will in fact occur.  Nevertheless, things are looking up today and we cannot ignore the potential for better pricing and that possible trend change.

There is no data on the docket for today, though Dennis Lockhart will be speaking at 12:40, discussing the economy to the Rotary Club of Atlanta.  Besides his speech, today will be all about the Treasury Auctions, with today’s auctions for the weekly 3-month and 6-month T-Bills and eyes focused on the 10-year TIPS at 1:00.  MBS prices have been volatile today and virtually anything can happen as the day progresses.

What does this mean for Florida Mortgage Rates?  Mortgage rates may edge lower today and the outlook may be changing, hence my change in stance.  Things may change, and quickly, when the Treasury Auction results are released, so be ready just in case.

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