Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 23, 2010

Locking Stance: CAUTIOUSLY FLOATING   Mortgage Bonds: +19bp

Mortgage backed securities showed some great strength yesterday and I almost got online to post a stance change.  MBS prices are continuing to show strength this morning, though there remains some uncertainty as to just how much higher they can go.  Both the 4.0% and the 4.5% coupon mortgage bonds are seeing their stochastic indications level off and maybe ready for a reversal.  All moving averages continue to climb, and the charts do look good as I have stated before, but that uncertainty bugs me a bit, especially as MBS prices are bucking against more resistance.  Be ready for a quick switch back to locking if need be, though I will be in the air much of the afternoon and may not be able to post quickly.

Today is “Fed Day” and that means they will be announcing their decision on whether or not to raise the Fed Funds Rate.  Who cares really?  The reality for us is what the Fed states in their Policy Statement is much more impacting on mortgage rates and MBS prices.  Both are issued at 2:15, so look for market reaction shortly thereafter.  I will try to get a post off between flights, very concise as it will be from my Blackberry in all likelihood.  We will also be seeing the 5-year Treasury Note auction’s results at 1:00.  Part of the reason for MBS price strength yesterday was the fact the 2-year T-Note auction yesterday went very well, so why wouldn’t today’s 5-year T-Note go well also?  As I mentioned in my radio show, MBA Purchase Applications showed a slight drop in purchase applications and a 7.3% drop in refinance applications, so no surprise here.  And imagine that, New Home Sales were reported at 300K, well below estimates of 400K, and down from 504K.  Now we can get to the real story behind housing since the tax credit is gone. 

What does this mean for Florida Mortgage Rates?  Mortgage rates continue to edge lower and may do so for the short-term.  The long-term is looking good, though we will need to see them edge slightly higher again soon.  Things could get interesting this afternoon, so be ready for a change of stance if need be.

Leave a Comment

Previous post:

Next post: