Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 5, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +3bp

Well, I hope you guys didn’t follow those “mortgage gurus” that said you should lock yesterday.  Instead, I hope you followed my advice because those whom truly can read the charts knew that even an unfavorable Jobs Jamboree would not likely cause mortgage backed securities to fall back below their 100-day and 50-day MAs.

OK, let’s get into the Jobs Jamboree numbers and see how bad they really were.  Nonfarm Payrolls were slightly worse than expected, at –20K versus 0 expected.  The Unemployment Rate was certainly not favorable as it dropped to 9.7% instead of rising to 10.1% as expected.  Average Hourly Earnings was inline with expectations at 0.2% and Average Workweek rose to 33.9 hours from 33.2 hours, the latter being what was expected.  Overall, mixed report but mostly unfavorable for MBS prices, hence why they plummeted initially, not unexpectedly by the way.  Nevertheless, MBS prices have bounced off what is now support and things are certainly looking better. 

What does this mean for Mortgage Rates?  Mortgage rates ticked higher initially this morning, but are edging lower again and appear to be set to move even lower from here though the future still remains uncertain.

Leave a Comment

Previous post:

Next post: