Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 9, 2010

Locking Stance:  LOCKING    Mortgage Bonds: +9bp

Mortgage backed securities continue in a tight trading range that is generally still an uptrend, but looks more like a sideways pattern.  Currently, overhead resistance and the support of the 10-day moving average have MBS prices trapped in a very tight range today and still leaving the future to question.

Today’s only bit of data was the Wholesale Trade report which showed inventories rose 0.5%, showing continued confidence though the report does show some dips in some inventories, such as factories.  This repot doesn’t typically affect the markets much and its impact has already been felt, leaving technical indications, news and stock market action to decide the direction of MBS prices and mortgage rates.  To that extent, the charts are not conclusive though stochastic indications continue to drift towards the bottom of the overbought range and that provides more room for MBS prices to rise if they choose to do so.  The original uptrend (recent) has been broken, but MBS prices do drift higher, though very slightly and without certainty.  As a result, the charts point to more of a sideways pattern at the moment and that leaves the risk/reward ratio unfavorable for floating.

What does this mean for Florida Mortgage Rates?  Low mortgage rates continue to hang in there and appear to be holding steady.  The outlook is uncertain, however the risk/reward ratio is simply not favorable for floating right now.

Leave a Comment

Previous post:

Next post: