Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 20, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +19bp

Mortgage backed securities moved back to close almost exactly at their 200-day MA yesterday, making the decision to float a smart one as MBS prices have improved even today and the outlook is getting better.  For those mortgage professionals that read these posts, I hope you didn’t act on those “locking” recommendations yesterday as you and/or your clients lost money if you did.  The new site I am working on will be up and running hopefully in time for next week’s Mortgage Market Update, which will hopefully be the first report published at the new site.  Details to come as it becomes ready.  Oh, and yes it is planned to be free advice, which is apparently better than the paid advice those rate alert services have been providing (just compare records).

OK, enough of boosting my ego, lol.  Yesterday’s Treasury Auctions were extremely strong, mostly due to reduced sizes, but that certainly helped MBS prices.  The Housing Market Index ticked lower, down one to 15.  Today’s MBA Purchase Applications showed Purchase Applications rose 4.4% and Refinance Applications jumped 10.7%.  However, Housing Starts dropped to 557K (below expectations of 579K) but Building Permits rose to 653K, up from 584K.  Today’s inflation read was the Producer Price Index, or PPI.  Overall PPI was higher than expected at 0.2% versus 0.0% and that brought the year/year rate up to 4.7%, certainly not the right direction for helping lower mortgage rates.  The good news in the report is that the Core PPI (remove food and energy) was 0.0%, below expectations of 0.1% and lowered the year/year rate to 0.9%.  The Core PPI is what is allowing strength in the mortgage bond market today.  William Dudley started spoke at 9:00 but his regulatory reform speech did not hit on monetary policy or the economy.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower today and the outlook is beginning to look good again for lower mortgage rates.

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