Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 23, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -41bp

Wow, I decided to switch to a locking stance this morning due to things looking ugly, as I mentioned in this morning’s Florida Mortgage Rates report.  Check it out if you haven’t already is it ended up being very foretelling of what happened today.

As I had mentioned the last couple of days, it looked like mortgage backed securities’ climb higher was coming to an end and today confirmed it.  While stocks were whipsawing back and forth and news was mostly favorable to mortgage bonds, with numerous earnings reports missing and the Initial Jobless Claims higher than expected, bonds should not have been lower.  Nevertheless, stocks managed to end higher and bonds fell considerably lower, testing their 200-day moving average which is basically where they rest right now.

The bottom line is all indications point to the USA being in a recession, but mortgage bond prices are dropping, which cannot be good.  Unless things change, you can expect the Feds to cut their rate again, likely by at least .50%, and that opens the door for increased inflation. 

Where are Florida Mortgage Rates headed?  As I mentioned earlier today, the odds favor them resuming their climb higher.

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