Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 6, 2010

Locking Stance: LOCKING    Mortgage Bonds: +12bp

Mortgage backed securities are up today, though they are well of their highs already, making me skeptical that the retracement, or corrective period, has solidly begun.  That may change today after this afternoon’s 10-year T-Note auction’s results are released, but we will have to wait to be certain.

Looking ahead to today’s auction, we can see strength weakening in the short-term Treasuries as the 3-month and 6-month T-Bill auctions results displayed.  The 3-month T-Bill’s results showed the bid/cover at 3.60, down from 4.25 for the Q1 2010 and the High Discount Rate rose to 0.175%.  The 6-month T-Bill’s results were similar as the bid/cover was 3.63 and the High Discount Rate rose to 0.265%.  However, the 10-year TIPS Auction went well, with a bid/cover of 3.43, up from 2.65, though the High Yield rose to 1.709%.  Overall, yields, or rates of return, are climbing again and that will likely spill over into mortgage rates as well.  As this day progresses, we will see more short-term Treasury Auctions, followed by the 3-year T-Note Auction at 1:00.  We will also see the release of the FOMC Minutes, which gives an insider’s view of the last FOMC Meeting.

What does this mean for Mortgage Rates?  Mortgage rates are improving slightly today, though it remains uncertain if that short-term outlook for improved rates will begin today.  The long-term outlook remains most favorable for higher mortgage rates.

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