Mortgage Rate Forecast – August 24, 2010

by Florida's #1 Mortgage Planner on August 24, 2010

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  +19bp

Mortgage backed securities are up 19bp at this time, up from the 12bp where they were during today’s radio show.  There was more technical analysis presented during this show than in the past and it is well worth listening to.  As was stated during the radio show, the normal weekly forecast will not be posted.

Today was another light day regarding data with the only market move potentially coming from the Existing Home Sales report.  Other data that was released today does not affect mortgage rates.  Existing Home Sales came in surprisingly low, at 3.83M, which was well below expectations of 4.650M and down over 1.5M from last report’s 5.37M.  Needless to say, this data clearly points to a housing market that is laying on its death bed, not recovering.  Still to come is the 2-year T-Note Treasury Auction (1:00) which should go well based on recent auctions and MBS price movement today.

What does this mean for Mortgage Rates?  Mortgage rates are holding steady and the outlook remains good for the moment for steady to improving mortgage rates.  There are some concerns as pointed out during the radio show, so be ready for change, as it may be lurking in the shadows.

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