Florida Mortgage Rates – Afternoon Report

by Florida's #1 Mortgage Planner on May 27, 2009

Locking Stance: LOCKING    Mortgage Bonds: –132bp

Yes, that is the current pricing point of MBS, down 132 basis points today alone.  For those of you wondering, that will translate into about 5/8 percent increase in mortgage rates tomorrow.  The good news is a retracement still needs to take place.  The bad news is that the retracement may not get you anywhere near what you could have had even this morning.  Adding to that, we are so far from the trading range at this point, that all hopes of low mortgage rates again are lost, barring the Fed from buying up trillions of MBS in a single day.

Today marks the fourth straight trading day that mortgage backed securities have plummeted and they are now down 181 basis points from when I posted the latest “Mortgage Rate Bubble” article at Florida Mortgage Report.  That also puts them down 259 basis points from their closing of May 20, which makes mortgage rates roughly 1 full percent higher in the last week!!!

What does this mean for Florida Mortgage Rates?  Well, as I have been saying, mortgage rates appear to be heading higher, and now they have done so dramatically.

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