Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 13, 2008

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  -6bp

Stocks are set to open in just a few moments, and things are looking fairly good as far as sentiment goes surrounding mortgage backed securities.  One can only wonder why no one in the US is willing to admit we are in a recession when all of the data clearly point to it.

This morning we see the results of the Initial Jobless Claims and the Balance of Trade.  The Balance of Trade came in basically inline with expectations, but is still rather low at -$56.5B.  Initial Jobless Claims, however, paint a rather dramatic picture, coming in much worse than expectations at 516K versus the expected 479K, adding more despair for those seeking jobs.

Since the data was released, we have seen mortgage bonds inch higher, coming off their lows.  Where they go from here will be largely decided on how stocks trade in light of the data.  Wal-mart beat earnings expectations, but they warned of a weak quarter and that may spook the markets enough to flow more money over into mortgage bonds. 

MBS are not out of the woods and in a rally mode by any means, at least not yet.  There may be some more opportunity to float throughout today, and play the Retail Sales card as well.  Just keep in mind that mortgage bonds have failed to break through their descending tops of their current trading range, even with an abysmal jobs report, so they could shrug off the Retail Sales just as easily.

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