Florida Mortgage Rates – Stance Change

by Florida's #1 Mortgage Planner on September 23, 2009

Locking Stance: LOCKING    Mortgage Bonds: –40bp

Mortgage backed securities have now broken solidly below their 25-day moving average and look to test the bottom of the sideways trading pattern.  The short-term sideways trading pattern has been broken unless they can regain the lost ground.

The reason for the drop was due to a lackluster Treasury Auction of the 5-year Treasury Note (T-Note).  At best, the results could be considered mixed, with the bid/cover ratio coming in at just 2.40 and the stop-out rate several points above expectations at 2.470% (Coupon Rate was 2.375%).  With a worse than expected showing in this auction, tomorrow’s auction of the 7-year Treasury Note (T-Note) is not looking too good and a significant drop in MBS prices is expected unless the FOMC Meeting Announcement can save them.

What does this mean for Florida Mortgage Rates?  Mortgage rates are ticking higher right now and the future is in question again.

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