Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 4, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +22bp

Mortgage backed securities are edging higher this morning on the simple fact that stocks are falling, which still comes from the uncertainty overseas.  Today doesn’t hold much data in regards to typically moving the markets, but there were some reports that are worth at least looking at.

Both the ICSC-Goldman Store Sales and the Redbook reports turned lower this week.  Factory Orders came in at 1.3%, well above the expectations of –0.1%.  The main report, if any were to move the markets, was the Pending Home Sales report.  Pending Home Sales came in at 102.9, beating expectations with its 5.3% rise, but that is still down from the 8.2% climb last report.  Still to come today are the 4-week and 52-week T-Bill auctions, which are expected to see continued strong results.  Anything less, though, could result in MBS prices taking a dive.  Tomorrow’s Treasury auction announcements will likely add pressure to MBS prices, so tomorrow will be a key day, especially since we will also be seeing the first glimpse of Friday’s Jobs Jamboree.

Looking at the charts, we can see the uncertainty as MBS prices are not providing any clear direction on where they will go from here.  They continue to try and break the long-term downtrend, going back to early March, but resistance continues to overwhelm them.  If they can break free solidly, lower mortgage rates may be in the works for a while.  The charts do continue to look better than before, with some positive indications, but some negative indications remain as well.  Stochastic indications are one of the biggest negatives, riding high in the overbought spectrum.  Overall, the future of mortgage rates remains in question, but we cannot rule out the possibility of lower mortgage rates, at least for the short-term.

What does this mean for Mortgage Rates?  Mortgage rates are edging lower this morning, though the outlook remains uncertain. This week will certainly play a deciding role into the future of mortgage rates, so be ready.

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