Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 3, 2010

Locking Stance: LOCKING    Mortgage Bonds: –12bp

Mortgage backed securities managed to edge slightly higher yesterday and ended the day up 9 basis points.  In the report yesterday, it was mentioned that today was the beginning of the “fun”, or potentially the “nail in the coffin” for MBS prices.  Well, so far it looks like the “nail in the coffin”.

This morning’s ADP Employment Report, the forecaster for Friday’s Jobs Jamboree, came in a little better than expected, at –22,000 versus –30,000.  Well, these days we are seeing that any report that is better than expected in favor of a recovering economy is considered a good report, even if it is still a negative one.  In other words, an economy that is shrinking less than expected is seen essentially as if we are in an economic recovery.  There was some good news in the MBA Purchase Applications report as it showed a 10.3% increase in Purchase Applications and a 26.3% in Refinance Applications.  The Treasury made their announcement of the upcoming auctions, indicating the following auction amounts…

  • $40B in 3-year T-Notes
  • $25B in 10-year T-Notes
  • $16B in 30-year T-Bonds

In the news was the fact that the nation’s debt, which just had its debt cap raised this month, is reportedly forecast to hit the new cap this month!!!  Certainly not a good sign.

What does this mean for Mortgage Rates?  Mortgage rates are edging higher today and may continue to do so.  The outlook remains uncertain as we may still see a sideways pattern, but current momentum is for higher mortgage rates.

Leave a Comment

Previous post:

Next post: