Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 27, 2010

Locking Stance: LOCKING    Mortgage Bonds: +9bp

Mortgage backed securities have already had an interesting morning, testing resistance several times and being beaten back each attempt.  Additionally, they opened down 9 basis points and may be finalizing a double-top formation, not a good sign.

MBA Purchase Applications was released this morning and showed a 3.3% drop in Purchase Applications.  More interestingly is the Refinance Applications side of things where the index fell 15.1% and caused the MBA to openly state “Although rates remain low, there appears to be a smaller pool of borrowers who are willing to refinance at today’s rates.”  Not overly surprisingly, New Home Sales came in well below estimates at 342K versus 370K, and that is a drop from 355K.  Once again, the housing market recovery is questionable.  There is the 5-year T-Note auction scheduled to be released at 1:00, but all eyes are on the Fed today.  The Fed will release this FOMC’s decision on the Fed Funds Rate and issue their Policy Statement at 2:15.  Remember that traders do not care much about the rate decision and focus more on the Policy Statement.

What does this mean for Florida Mortgage Rates?  Mortgage rates are essentially remaining stable this morning and any move will not likely take place until this afternoon.  While there may be a chance for improvement, the odds favor mortgage rates edging higher.

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