Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 11, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Mortgage backed securities are still not showing clear signs of which direction they are willing to go.  However, the charts are clearing up and positive signs remain, including the diminishing need for additional corrective moves.  With yesterday’s still strong Treasury auction results, it is not much wonder why MBS prices are attempting to push higher.

While there was data today, it is very minor, but worth noting nonetheless.  The most important of the reports was the Wholesale Trade which showed inventories up 0.4%, with the underlying results somewhat mixed.  The ICSC-Goldman Store Sales report showed a 0.1% increase, up from –0.4% last week, with the year/year edging slightly lower to 4.3%.  The Redbook report showed year/year Store Sales rising to 3.3%, up from 1.7% last week.  Again, these are minor reports and do not move the markets much, so the big event of the day will clearly be this afternoon’s 3-year T-Note auction, which we will see the results at 1:00.  Be ready for a change in stance if this auction is not met with strong demand, but signs indicate it should go well, at least for now.

What does this mean for Mortgage Rates?  Mortgage rates ticked slightly lower this morning and may be ready to try to move lower again.  The charts remain uncertain in their forecast, but the outlook is looking good at the moment.

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