Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 22, 2010

Locking Stance: LOCKING   Mortgage Bonds: +22bp

As I mentioned yesterday during my radio show, MBS prices had managed a rally to regain lost ground.  This morning, they were pushing to new heights as well and I decided not to  switch stances back to cautiously floating as the risk/reward ratio just isn’t good enough for me.  The problem is that they still have not broken through very tough resistance.  Maybe things will change, maybe not.  Also, keep in mind that if you cannot stomach risk, always lock and stop reading this.

Today marks the beginning of the FOMC Meeting and the Feds will be making their next Fed Funds Rate decision tomorrow afternoon.  Remember not to focus on the rate decision, rather focus on the Policy Statement which is what really plays into where mortgage rates go from here.  Data is mostly not a factor today, while news overseas is, namely China.  Remember that China has been stating they might adjust their currency (Yuan) to be less manipulative and that sent stocks rallying and MBS prices lower in the morning, but skepticism (and rightfully so) took hold and everything reversed course.  As expected, Existing Home Sales dropped, down to 5.66 M, or –2.2%, as the tax credit expired.  Treasury Secretary Tim Geithner is testifying on TARP before the Congressional Oversight Panel on TARP in Washington right now.  But the main event will likely be this afternoon’s results of the 2-year T-Note auction due out at 1:00.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower and trying to continue to do so.  Whether they succeed or not remains to be seen and the long-term outlook remains unclear.  The risk/reward ratio is not good enough for me to suggest floating at this time, though that may change later.

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