Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 26, 2010

Locking Stance: LOCKING    Mortgage Bonds: +3bp

Mortgage backed securities are making another attempt to break through their 100-day moving average, but they have another resistance layer just above as well, namely the last “peak”.  If they can successfully break that level, lower mortgage rates are awaiting us.  If not, mortgage rates are back on the climb.

Data today included a couple of moderate and heavy hitters.  GDP started the day off, beating estimates slightly, coming in at 5.9% versus 5.7%.  The GDP Price index came in at 0.4%, below expectations of 0.6%, and favorable to mortgage bonds.  Chicago PMI was the big report of the day, beating expectations with a 62.6 versus the 60.0 estimated.  Consumer Sentiment came in essentially inline with expectations at 73.6.  And, probably not surprisingly, Existing Home Sales was well below expectations at 5.05M compared to the expected 5.50M while supply rose to 7.2 months from 6.5 months.

The charts are beginning to look more like the best we are going to get is a sideways pattern, meaning mortgage rates will climb, then likely drop back to about where they are this morning.  We still have a while before we see the future become certain again, but for now it appears mortgage rates are likely turning higher again.

What does this mean fro Mortgage Rates?  Mortgage rates likely have gotten as low as they are going to get, though the future remains uncertain still.

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