Florida Mortgage Market – Recap

by Florida's #1 Mortgage Planner on March 11, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +22bp

Mortgage bonds ended the day up 22bp, a move that was in unison to the stock market.  The move higher was fueled by the Fed’s decision to start a Term Securities Lending Facility on top of the Term Auction Facility.  This move will provide more money to hopefully ease the credit crunch.

Part of the reason mortgage bonds moved higher is that the Fed move implies less risk for investors.  That attracts more investors into the markets and drives prices higher, basic supply and demand. 

The question for the future will be, is the move sustainable?  Time will tell, but the first two tests are Retail Sales and CPI, both coming in just a couple of days.

Leave a Comment

Previous post:

Next post: