Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 22, 2010

Locking Stance: LOCKING    Mortgage Bonds: +9bp

Mortgage backed securities are making an attempt to prevent a downtrend from forming.  As I mentioned in last night’s weekly report, MBS prices would need to mount a significant move in order to buck the trend.

Last night, Health Care legislation was past and that is driving the markets a lot this morning.  But just because Health Care is about to become law, that battle is still far from over and most Americans are not happy.  This could play out in future Consumer Confidence and Consumer Sentiment reports, not just in the markets today.  The consensus is that the bill will become law, then declared unconstitutional.

There is no data on the docket today, but the weekly short-term Treasury Auctions and some Feds speaking will be watched.  The 3-month and 6-month T-Bill auctions’ results will be released at 11:30.  At 3:45, Atlanta Federal Reserve Bank President Dennis Lockhart will be speaking on the economic outlook at the Naples Council on World Affairs in Naples, Florida. (He will repeat the speech at 7:00 pm).  Shortly following, at 4:30, Treasury Secretary Tim Geithner speaks at the American Enterprise Institute on the subject of financial regulatory reform.

The charts still look ominous, but this move higher this morning is making things look a little brighter, which we cannot rule out.  This move may falter later today as well, so play it very cautiously if you decide to float.

What does this mean for Mortgage Rates?  We remain in an uncertain market.  Mortgage rates edged slightly lower this morning, but this move may not last.  Additionally, with the uncertainty, locking is generally the best bet.

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