Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 12, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: 0bp

Mortgage backed securities are headed nowhere fast today, though they did make some nice ground yesterday despite what the charts look like at the moment.  The reason for that drop yesterday was due to the monthly mortgage bond coupon rollover which caused an adjustment of –34bp.  The chart no longer appears like the downtrend is broken, but remember that it may actually be broken but we will need a few days to ensure that is the case.

Yesterday’s move was supported by a set of solid Treasury Auctions.  The 3-month and 6-month T-Bill auctions continue to see very strong results.  The 10-year TIPS auction was solid a well, and has a coupon rate of 1.375%, matching the lows of October and July 2008 for the lowest rate in 13 years.  That certainly bodes well for MBS prices as well, and thus mortgage rates. 

Today’s data includes the International Trade report, already released, along with more Treasury auctions, with eyes focused mostly on the 3-year T-Note auction to be released at 1:00.  The International Trade report showed the Trade Balance Level at $-36.4B, below expectations of $-35.0B, another plus for MBS prices.  Charles Plosser will be speaking this evening on the economic outlook to the Entrepreneurs Forum of Greater Philadelphia. 

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady or move lower today and the outlook for mortgage rates may still be changing.  Over the next few days, we may see the trend broken and the opportunity to see lower mortgage rates again.

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