Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 15, 2010

Locking Stance: LOCKING    Mortgage Bonds: –9bp

I have some good news.  I will be restarting the weekly mortgage market updates at Lenderama next week and hopefully that will help promote this website and MBS Commentary, which I just got back up and running again as I had to rewrite the one article I had published there before.  Remember, I started adding these posts to MBS Commentary a while ago, though I still have to re-upload most of them since that time.

OK, into what you are really here for.  Mortgage backed securities are down slightly this morning and are currently indicating that the resistance of their 25-day moving average is going to be too tough to break.  The markets still seem confused on exactly which direction to go from here so this week plays an important role in forecasting the future, especially with the FOMC Meeting occurring this week.  The charts still favor the slow climb in mortgage rates at the moment.

Data today is fairly benign.  The Empire State Manufacturing Survey was reported at 22.86, just above its estimates of 22.0 and below the last reading of 24.91.  In the Industrial Production report, Production was 0.1%, just above the 0.0% expected and down from 0.9% in the prior report.  Capacity Utilization, the other part of the Industrial Production report, was reported at 72.7%, slightly above expectations of 72.4% and edging up from 72.6% last report.  The concerns, however, can be seen in the Treasury International Capital report, which showed Foreign Demand for Long-Term US Securities to be $19.1B, down considerably from $63.3B in the prior report.  But then again, we have known foreign demand had been dropping as you can see in this article at the new Florida Mortgage Report.

Despite today’s benign data, this week will hold some key players with a focus on inflation coming this Thursday in particular.  In fact, Thursday is loaded with data, speeches and Treasury announcements.  The markets will likely hold fairly steady until the release of the Fed’s decision tomorrow at the FOMC Meeting Announcement.  Remember that their Policy Statement is more important to mortgage rates than their rate decision.

What does this mean for Mortgage Rates?  Mortgage rates are edging slightly higher this morning though they will likely hold steady today.  The outlook remains uncertain but still favors higher mortgage rates, at least for now.

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