Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 7, 2008

Locking Stance:  LOCKING   Mortgage Bonds:  0bp

Mortgage backed securities are currently flat, but they are moving up from being down slightly a moment ago.  Why?  You couldn’t ask for a more favorable jobs report, that’s why.

Non-farm Payrolls were higher than expected, coming in at -240K versus the -200K expected.  The Unemployment Rate jumped to 6.5%, instead of the 6.3% expected.  And while the Average Work Week stayed the same, Hourly Earnings were less than expected, coming in at 0.2% versus the expected 0.3%.

So, that set of data cannot be better right now for mortgage backed securities, and that means it can’t get better for Florida Mortgage Rates either.  So, why am I suggesting to lock?

Well, quite simply, technicals don’t support a rally right now and bonds are not showing life either.  For a report such as this, mortgage backed securities should be rallying like crazy, but they are acting dead in the water.  Time will tell for sure, but I don’t like the looks of things.

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