Florida Mortgage Market – Week in Review

by Florida's #1 Mortgage Planner on March 3, 2008

Last week was another wild ride for mortgage backed securities, only this time they ended higher and allowed mortgage rates to improve by .25-.375%, welcome news indeed.

The tug of war of fears continued, but despite inflation increasing and outside of the Fed’s target range, inflation lost the battle as data came in showing a slowing economy that fueled recessionary fears.  Even Bernanke continued to downplay inflation and focus on battling recession instead.  Interestingly enough, he subtly mentioned his growing concerns for inflation as well, saying inflationary pressures could hinder the Fed’s rate cutting ability.

Nevertheless, with all of the data pouring in giving you your choice of which side to be on, fears of recession won last week’s battle, sending bonds higher and allowing mortgage rates to improve.

Check out the forecast post for a clue on what is in store for the coming week.

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