Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 20, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +103bp

The markets just closed and both mortgage backed securities and stocks had a very good day indeed.  Mortgage bonds themselves pushed right up through their 100-day, 50-day, 25-day and even 200-day moving averages, all in one day, showing sings of life that could yet send mortgage rates lower.  It also shows that emotions are still in control of the markets and today’s speeches about the easing of credit restraints freed let the money flow freely.

Of course, it certainly was helpful that PIMCO, the leader of bond funds, mentioned they were buying up mortgage backed securities.  LIBOR has now dropped back to more normal levels as well with the easing of credit.  Bernanke talked about the need for more economic stimulus packages, easing more fears and letting stocks ride the wave.

Mortgage bonds have now gained back nearly all that they lost last week, making the future look a little brighter, at least for now.  If they turn lower and fail to set a higher “peak”, a downtrend will be firmly in place.  If they do manage, however, to set new recent highs, lower mortgage rates will be in the future.

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