Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 5, 2010

Locking Stance: LOCKING    Mortgage Bonds: –9bp

Mortgage backed securities are down 9 basis points right now and just 3bp below where they opened.  That means the corrective move has not yet truly begun.  

Data today is certainly not helping MBS prices as Pending Home Sales and the ISM Services Index were reported already.  Pending Home Sales was reported at  97.6, up from 90.4 and that means they climbed 8.2%.  Time will tell if this is just due to the expiration of the housing stimulus.  The ISM Non-manufacturing Index (ISM Services Index) was reported at 55.4, up from 53.0 and well above expectations of 54.0.  Overall, the data was not favorable as it indicates a growing economy.  There are several Treasury auctions today that may help the markets as the 3-month T-Bill and 6-month T-Bill results are released at 11:30, followed by the 10-year TIPS auction at 1:00.

What does this mean for Mortgage Rates?  The short-term outlook shows a need for a corrective move in mortgage rates, though that period does not appear to have started yet.  Everything beyond the short-term remains most favorable for mortgage rates continuing their climb.

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