Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 21, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  0bp

When all was said and done, and trading ended, bonds flatlined for the day, so all hope is not lost.  There are concerns that bonds will not be able to break out higher as they feel from their highs of being up over 20bp, though they were off their lows as well.  Tomorrow is another day and bonds will need to muster strength which will be hard to due with Crude Inventories being the only listed data to be released.

The global markets are still seeing central bank interventions doing the best they can to get credit flowing again by pumping liquidity into the system and urging banks to release some of their capital.  Our own Federal Reserve announced yet another “facility” to throw money at the problem, this time forming the MMIFF (Money Market Investor Funding Facility).  The Fed is setting up 5 facilities to fund $540 billion in short CDs, bank notes, and commercial paper. 

While much of the day traded as you would expect, that is stocks lower and bonds higher as a result, the ending was not a very good one for the outlook of mortgage rates.  As I have said, if mortgage bonds fail to climb to a higher “peak” in the charts, a downtrend will have formed and that means higher rates will be marked for the future.

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