Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 15, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +25bp

OK, let’s try this again.  Mortgage backed securities are mounting a nice rally today and have past the last two “peaks”, so this should be the breaking point of the downtrend, or simply it should allow for lower mortgage rates.  The move is on yesterday’s solid 30-year T-Bond auction and, more convincingly, today’s CPI data.

CPI, or Consumer Price Index, was released this morning and it came in inline with expectations with a 0.1% report.  These numbers were exactly the same for both the Core CPI and overall CPI.  The year/year rate for overall CPI rose to 2.8%, up from 1.9%.  The year/year rate for the Core CPI was less drastic at 1.8%, up from 1.7% and not alarming, hence the rise in MBS prices.  A less favorable report released this morning was the Empire State Manufacturing survey which beat expectations, coming in at 15.92 versus 13.0. 

Looking at the charts, it seems MBS prices do not know where they are going, though today’s move should provide a nice outlook as they broke above their 25-day MA and are testing their 200-day MA.  They are off their highs, so the outlook may change again.  We do have Consumer Sentiment coming up just before 10:00, but after that, there is essentially nothing to sway them either way.  Stochastic indications are on middle ground right now and allow for moves in either direction and we still have some negative indications as well, so the future is not certain yet, though hope is back.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower this morning and the outlook is not certain as lower mortgage rates may be back in play.  Stay tuned as the picture clears up.

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