Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 1, 2010

Locking Stance: LOCKING    Mortgage Bonds: –31bp

I am going to have to keep this report short as I am about to fly an airplane and need to get the preflight checks done.  That also means I will not be able to watch the markets most of the day and will report back later regarding any significant changes.  Nevertheless, I don’t think this morning’s gap lower is going to change anything I have been forecasting.

Mortgage backed securities are reacting to a number of things and the Fed is no longer able to artificially inflate their prices, begging to question if that “mortgage rate bubble” is in the process of popping.  Remember, I coined and trademarked this phrase about a year ago.  Jobless Claims was reported at 439K, roughly inline with expectations of 440K while the 4-week moving average improved to 447.25K.  We will be seeing the ISM Manufacturing Index released at 10:00, but the most detrimental item on the agenda, especially without the Fed’s capability to fend off negativity, is the Treasury Announcements and the added supply they will create.  Volatility will likely be a factor today and tomorrow, so fasten those seatbelts as we are likely going to experience some turbulence.

What does this mean for Mortgage Rates?  Same as yesterday, both the short-term and long-term outlooks are favoring higher mortgage rates for the foreseeable future. 

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