Florida Mortgage Rates – Morning Report

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

Locking Stance: LOCKING    Mortgage Bonds: –6bp

Mortgage backed securities continue to maintain a confused state of mind regarding their direction.  There still has not been a corrective move, yet they hover around their 100-day moving average, drifting slightly lower each passing day.  I doubt this will last much longer as this week holds plenty of data, including Friday’s Jobs Jamboree.

Data today has already been somewhat favorable as the ADP Employment Report was inline with expectations but the prior report was revised lower, typically favorable for MBS prices.  MBA Purchase Applications showed purchase applications rose 9.0% and refinance applications jumped 17.2%.  While these are steps in the right direction, the numbers are still far from a “recovery”.  The only good news for jobs right now is the Challenger Job-Cut Report which came in at 42,090, hitting the lowest total since mid-2006.  The ISM Services Index was slightly better than expected, coming in at 53.0 versus 51.0.  Still to come is the Beige Book at 2:00.

Minneapolis Federal Reserve Bank President Naranyana Kocherlakota speech yesterday also showed his concerns about economic recovery and the jobs market, certainly favorable to MBS prices.  Dallas Federal Reserve Bank President Richard Fisher was speaking on globalization and the recovery to the Council on Foreign Relations in New York today, as was Boston Federal Reserve Bank President Eric Rosengren speaking at a conference on post-crisis capital markets in Philadelphia.  Rosengren stated that the Fed’s low interest rate is “now totally appropriate.”  Still to come today is Atlanta Federal Reserve Bank President Dennis Lockhart’s speech on credit markets and the economic outlook to the New York Association for Business Economics.

What does this mean for Mortgage Rates?  Mortgage rates are likely to hold steady again today, though the Beige Book may change that.  The outlook remains most favorable for mortgage rates to edge back higher.

(Note:  MBS Commentary is still down due to the hosting company’s lack of support to correct the database connection.  I may have to start all over, but will take some time and the article that was posted may be lost forever.)

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