Florida Mortgage Rates – Evening Report

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

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +6bp

I am changing my stance for the weekend at least as mortgage bonds managed to just edge above their 25-day moving average when the markets came to a close.  That means that next week may prove beneficial to mortgage rates instead of the gloomy picture that was playing out most of the day.

Mortgage bonds are only 3bp above that level, so it sure isn’t a solid footing and that is the reason caution remains.  Besides, since the market was unhappy with the bailout bill the House passed and was signed into law by President Bush, they are now asking for up to a 100bp cut in the Fed Funds Rate.  If recent history dictates what will happen this weekend, what the market asks for, Bernanke and buddies give it to them.

And just what are all of these bailouts doing to solve the credit crisis?  Absolutely nothing other than prolonging the problem.  Did anyone ever think the market needs a crash in order to recover? 

Make sure you read my Mortgage Market Update Monday over at Lenderama for what is likely in store for next week.  Have a great weekend.

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