Florida Mortgage Rates – Special Report

by Florida's #1 Mortgage Planner on January 13, 2010

Locking Stance: LOCKING    Mortgage Bonds: –34bp

Mortgage backed securities are dropping today and that means the downtrend may not have been solidly broken.  In simpler terms, lower mortgage rates that looked like a possibility no longer are appearing to be coming.  Sorry, but it appears I spoke a too early about the break of the downtrend.

Much of the move lower today is due to stocks attempting to move higher.  The 10-year T-Note auction results were solid but do not appear to be providing a boost to MBS prices, rather they are just cushioning the fall.  We are now sitting on the 10-day MA after bouncing lower off the resistance of the falling 25-day MA.  We are essentially trapped in a narrowing range that will need to be broken soon and the momentum is for lower MBS prices, aka higher mortgage rates.

What does this mean for Florida Mortgage Rates?  The outlook has changed and mortgage rates are edging higher right now and the outlook is back to an uncertain one, possibly even favoring higher mortgage rates again.

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