Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 28, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -56bp

Another day, another 50+ basis point loss.  As I mentioned before, mortgage backed securities would fall to test their October 14th lows, and likely their July lows as well.  Their support is holding at the moment and that may allow them a brief rally before resuming their downtrend.

Don’t get your hopes up too much as tomorrow afternoon will be the release of the Fed’s rate decision, with a 50 basis points cut expected bring the Fed Funds Rate down to 1.00% even.  Many analysts are starting to compare the Feds moves to what the Japanese did about a decade ago and that the Fed will have to drop the rate to 0.00%.  Do you think the Fed is turning Japanese?  I really think so.

There was another $34 billion added to the supply in the form of Treasuries today, and that certainly didn’t help the mortgage bond market.  The S&P Case-Shiller indexes fell for the 25th straight month, but recent housing numbers have shown improvement in sales, though prices continue to fall nationwide.

A lot more things are going on that I won’t get into as I like to keep these reports fairly brief.  On the technical side, the charts look ugly in virtually all aspects.  The downtrend looks to remain strong, though a retracement of sorts can be expected, possibly as soon as tomorrow.  Overall, the future looks bleak for Florida Mortgage Rates.

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