Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 27, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -53bp

Mortgage bonds were beaten down today, though they did end off their lows, having been down 84 basis points at one point.  The move lower was not unexpected for those whom have been following these reports for some time, especially those that also read my weekly updates at Lenderama.

There were several justifiable reasons for the drop, that is besides the technical factors.  The influx of $6 billion in TIPS (Treasury Inflation Protection Securities) certainly added supply to the mix and pressured bond prices.  Foreign participation in the TIPS was considerably lower than in the past and that does not bode well for mortgage backed securities moving forward.  Remember that when mortgage bond prices drop, Florida Mortgage Rates move higher.

Just as we saw on Friday, mortgage bonds were down considerably on a day when stocks took a bit of a beating as well.  That is never a good sign for the future of mortgage bonds, and thus mortgage rates.

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