Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 28, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +38bp

Mortgage backed securities are continuing their push higher today and look to do so, even breaking through resistance, if the charts and data hold up.  Don’t forget to check out this week’s Mortgage Rate Forecast (weekly) at my ActiveRain blog, which I am bringing back to life and will continue to have these weekly mortgage rate forecasts.  Also, since I am stuck in Brasil right now, I had to move the weekly radio show broadcast to tomorrow at 11:00, so please stop by and feel free to ask me any questions you might have in regards to where mortgage rates are headed.

This week holds a lot of market-moving data, and that started today.  This morning was the release of the Fed’s favorite gauge on inflation, the Personal Consumption Expenditures Index, or PCE for short.  Core PCE came in at 0.2%, which actually was just above expectations of 0.1%, but is still tame overall.  Headline PCE was flat and with Personal Income coming in below expectations at 0.4% versus 0.5% and dropping to 1.6% year/year, along with Consumer Spending inline with expectations, this report is certainly not unfavorable.  A newer report that I am following is the Chicago Fed National Activity Index, which edged lower to +0.21 and the 3-week rolling average is at +0.28.  This report is not a market mover, but does give some underlying insight into the overall economic recovery, so you may see me hit on it once in a while (monthly report).  Still to come today are the weekly short-term Treasury auctions.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower and look to continue to do so at least for today.  Things may change during the week, but the short-term outlook is for lower mortgage rates and the long-term outlook is good at this time, though caution needs to remain.

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