Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 24, 2010

Locking Stance: LOCKING    Mortgage Bonds: -3bp

I wanted to wait to see how data played out this morning as I suspected change was in the air and the little ray of sunshine in the charts may get bigger.  I am glad I did as mortgage backed securities are still on the rise and resistance is still holding, keeping that ray of sunshine from lighting the way to lower mortgage rates.  MBS prices maintained positive ground yesterday as the 2-year T-Note auction showed decent results.

Starting the day off was the MBA Purchase Applications report which showed a 7.3% drop in Purchase Applications, bringing them to their lowest point since 1997, further proof our housing market is far from recovery.  Refinance Applications were also down 8.9% this report.  But the big report of the day was the New Home Sales report which surprised the markets with a mere 309K, well below the 360K expected and a large drop from last month’s 342K.  Certainly, this report strikes another blow to the housing recovery.  This afternoon will see the results of today’s 5-year T-Note auction.

At 10:00, Federal Reserve Chairman Ben Bernanke (FOMC Voting Member) began his Semiannual Monetary Policy Report to the Congress, before the House Committee on Financial Services, U.S. House of Representatives.  Some highlights of his testimony are the reiteration of the Fed’s forecast for a modest recovery, a slow decline in unemployment, and soft inflation.  He also sees the credit markets improving for short-term lending but bank lending is still contracting.  In regards to monetary policy, he reiterated the Fed’s planned exit strategy from the massive expansion of its balance sheet (MBS purchase plan included).

What does this mean for Mortgage Rates?  It appears that move higher, while offering a slight ray of hope, remains nothing more than a correction and mortgage rates are going edge higher again.

Leave a Comment

Previous post:

Next post: