Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 25, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Mortgage backed securities fell quite a bit yesterday despite a strong 7-year T-Note auction.  Then again, they were struggling against some tough resistance and finally weakened enough to get pushed back into a corrective move, or retracement.  The good news is that it appears they had a move far enough to cover that retracement and may be ready to make another attempt at breaking that overhead resistance.  Things can change, and quickly at that, so be ready just in case.

Data today started off with the GDP report.  Real GDP was reported at 2.7%, just below expectations of 3.0% and the GDP Price Index was reported at 1.1%, just above the 1.0% expected.  Overall, a fairly benign report.  Consumer Sentiment was released as well this morning and was reported at 76.0, slightly above expectations of 75.5 and up from the 75.5 in the last report.  The inside scoop on this report is that with consumer spirits running high, the high levels of Jobless Claims may be a result of special factors and not due to actual deterioration in the labor market.  That kind of thinking aims at a continued economic recovery and a better jobs picture than has been presented with its respective data.

What does this mean for Florida Mortgage Rates?  Mortgage rates edged higher as expected, though now they appear ready and able to edge lower again, testing their recent lows.  The market is still very volatile and the long-term outlook is not perfect for even lower mortgage rates, so be ready if the winds of change blow.

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