Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 31, 2008

Locking Stance:  LOCKING    Mortgage Bonds:  +16bp

Mortgage backed securities leaped out of the starting gate and as data flowed, they rallied even further, only after the market digested the data did they begin to falter as I mentioned could happen in this morning’s report.

The data was not overly bond friendly as it flowed this morning.  As I mentioned earlier, ECI came in as expected and its annual rate is at 3.0%.  Most importantly, PCE (Feds’ favorite gauge on inflation) came at just 0.2%, same as last month, but still the annual rate ticked slightly higher and is above the Feds’ “comfort zone”.  It remains to be seen if inflation will truly moderate.

Other data included Personal Spending and Personal Income, with spending dropping and income ticking higher slightly, bond friendly in the sense of “recessionary fears.”  Chicago PMI also came in well below expectations, which is bond friendly as well and the most bond friendly report to say the least.  And yet, Consumer Sentiment ticked ever so slightly higher.

What does it all mean for Florida Mortgage Rates?

Quite simply, mortgage rates ended the day with slightly better pricing than yesterday.  However, if you heeded my morning report and alert, you likely got the best pricing you will see for the foreseeable future as mortgage rates may very well move higher into next week. 

Spooked yet?  Don’t forget to check out the weekly Mortgage Market Update over at Lenderama on Monday to see where mortgage rates are headed and have a safe and happy Halloween.

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