Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 12, 2010

Locking Stance:  LOCKING    Mortgage Bonds:  +12bp

I just finished doing today’s radio show (can listen in the right sidebar), and I apologize with how quickly I finished as I did not realize I had not extended the time allotted and got caught with my pants down so to speak.  Oh well, we learn from our mistakes, right?  Listen to it anyway as it covers last week and the week ahead, including today’s technical analysis.

Mortgage backed securities started a mini-rally as I was broadcasting seemingly fueled by Jeffrey Lacker’s comments and the skepticism from the markets.  Mr. Lacker stated we should essentially be ignoring the data (“soft data” as he puts it) and that the markets are overreacting to that data.  Well, if he thought they were overreacting before, he must be furious now as stocks have turned even lower which is sending money into mortgage bonds.  Good for low mortgage rates, but certainly not a solid “strength” to base decisions on at the moment.  Ben Bernanke was discussing the need for credit to be extended for small businesses in order to get this economy going again, which is partially true, but it also could backfire down the road.  Data itself is non-existent today but the weekly Treasury Auctions are coming up shortly and their results may spill over into the MBS markets, especially this afternoon’s 3-year T-Note Auction (1:00).  At 5:15, Governor Elizabeth A. Duke (FOMC Voting Member) will be speaking on "Small Business Credit: Next Steps" at the Addressing the Financing Needs of Small Business Forum, Federal Reserve Board, Washington, D.C., following up on Federal Reserve Chairman Ben Bernanke’s (FOMC Voting Member) speech on "Restoring the Flow of Credit to Small Business," at the Addressing the Financing Needs of Small Business Forum, Federal Reserve Board, Washington, D.C. from this morning. 

What does this mean for Florida Mortgage Rates?  Mortgage rates are holding steady and appear likely to do so the remainder of the day.  As the week unfolds, change may be in the air and the risk/reward ratio is still unfavorable for floating at this point.

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