Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 10, 2010

Locking Stance: LOCKING    Mortgage Bonds: –22bp

Mortgage backed securities managed to edge out some more gains yesterday, even after falling considerably for a while.  The 3-year Treasury Note auction was well received and the results were quite favorable for MBS prices to climb, and indeed they did, ending the day up 15bp.  But they also showed their weakness during the day and with the monthly mortgage bond rollover (-34bp), the charts are once again skewed and maybe to the detriment of MBS prices and mortgage rates. 

MBA Purchase Applications was reported this morning and showed purchase applications rose another 5.7%.  While we have now seen gains the last two weeks, the index is still quite depressed and will need several more weeks of gains before we can say there is clearly greater demand, which may be caused merely by the approach of April’s stimulus expiration.  Also, refinance applications fell 1.5%.  Wholesale Trade was reported at –0.2%, up from –0.8% last report.  Crude Inventories was reported up 1.4M.

Later today we will see Treasury Secretary Tim Geithner testify before House Appropriations Financial Services Subcommittee on FY2011 Treasury budget, which should be interesting.  But before that, we will see the results of the 10-year Treasury Note auction and that could shake the markets depending on the results.

What does this mean for Mortgage Rates?  Mortgage rates are edging slightly higher today.  The outlook is still not etched in stone, but the odds remain most favorable for mortgage rates to climb some more.

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