Florida Mortgage Rates – Special Report

by Florida's #1 Mortgage Planner on October 30, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +31bp

This report is basically due to the fact I forgot to change the Locking Stance back to CAUTIOUSLY FLOATING in this morning’s report, which I apologize for.  For those of you whom read the full text, especially the last sentence just above the “What does this mean for Florida Mortgage Rates?”, you probably had already figured out the mistake.  I just returned to the office and went online and saw it and needed to correct myself.  That being said, I may be changing stance by the end of the day anyway, but for now, I wanted to see how today played out, but for now, I expect to be in a LOCKING stance before the day closes, so if you locked on that post, don’t worry.

At least now I can also update you on the latest economic data.  Chicago PMI came in better than expected, at 54.2 versus estimates of 48.5.  Chalk up one factor up for higher mortgage rates.  Even Consumer Sentiment was slightly better than expectations, at 70.6 versus 70.0 and up from last month.  Chalk another factor for higher mortgage rates.  But reality is that while the economy may be improving, it is still slow to recover.  Adding to that, inflation has not showed its ugly side as yet, so essentially we have mixed signals coming into the markets.  What that means is that you should not expect any major movements in either direction for mortgage rates at the moment.

Back to technical indications, as I mentioned earlier, the indications remain mixed at the moment.  MBS prices are up against their 25-day MA, which is a strong resistance, and also needs to be broken to prevent a sideways pattern, or even a resumption of a downtrend from forming.  Stochastic indications are mixed as well, with the fast stochastics (short-term) looking reasonably positive, but the slow stochastics (medium to long-term) are flattening out and may turn negative.  the 25-day and 50-day MAs are edging higher, but the gap is narrowing still.  The outlook is still uncertain and will depend on what MBS prices do in the next day or two of trading.

What does this mean for Florida Mortgage Rates?  Lenders have not re-priced for the better yet today, but mortgage rates should see better pricing if they can hold their ground.  The outlook remains uncertain, though the future should be clearing up soon.

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