Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 12, 2010

Locking Stance: LOCKING    Mortgage Bonds: –22bp

Mortgage backed securities have been all over the map this morning already as data flowed and knee-jerk reactions abounded.  Looking at the charts, we have now arrived at the solid retracement level I have been talking about, but it may not remain as simply a retracement, so don’t be quick to think lower mortgage rates are coming back.

Retail Sales was the major player today and was reported at 0.3%, well above the consensus of –0.2%, though down from 0.5% last report.  Take out autos and we see a slightly different picture as the numbers were 0.8% versus the 0.0% expected and up from 0.6% last month.  Certainly not a favorable report for mortgage bonds and MBS prices fell.  Then came Consumer Sentiment, reported at 72, below the consensus of 74.0 and down from last month.  MBS prices rebounded as a result but have since fallen again.  Why?  As traders digested the Consumer Sentiment data, inflation expectations came in at 2.8%, up from 2.7% last report and that is possibly spooking the markets.

What does this mean for Mortgage Rates?  Mortgage rates rose slightly this morning and may continue to do so though the future remains uncertain.  The charts still favor mortgage rates to climb more.

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