Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 13, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: 0bp

Mortgage backed securities had a very nice day yesterday, ending up 53bp and I think it is now safe to say the downtrend has been broken and lower mortgage rates may be in the future once again.  Even today they are already rebounding from being down earlier.  (Oh, and for those of you wondering what happened to this week’s Mortgage Market Update at Lenderama, please understand that this week’s report may end up being omitted as Lenderama changed owner’s and they are redeveloping the site.  I am also working on another location for mortgage market updates geared more toward the mortgage professional, but it is just undergoing its development, so I will announce its location later as part of my new service launch, Mortgage Air™.)

The reason for yesterday’s climb higher was certainly attributable to the Treasury Auctions, namely the 3-year T-Note.  The bid/cover ratio of the 3-year was not impressive, that is unless you account for the large $40B size.  Overall, this Treasury auction went quite well and had very tight bidding results giving a boost to MBS prices.  Yesterday’s International Trade report was also helpful.

Today’s data is fairly benign and all eyes will be focused on this afternoon’s 10-year T-Note auction to be released at 1:00.  Charles Evans will be speaking on the economy and monetary policy at 12:30 and we do have the Fed’s Beige Book slated to be released at 2:00.  MBA Purchase Applications was released this morning and showed a 0.8% increase in Purchase Applications and a 21.8% jump in refinance applications.  The MBA also had another downward revision yesterday in expectations of mortgage applications for 2010. Data really starts playing more of a role in MBS prices tomorrow with Retail Sales.

What does this mean for Florida Mortgage Rates?  Mortgage rates continue to edge lower and the trend appears to have changed to allow lower mortgage rates again. 

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