Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on December 1, 2008

Locking Stance:  CAUTOUSLY FLOATING    Mortgage Bonds: +22bp

Mortgage bonds traded in a very wide range today, starting off with this morning’s data and the plunge of stocks.  Then came Bernanke’s speech and mortgage backed securities rallied, moving to the highest we have seen since the beginning of this year, almost reaching beyond even January’s highs.  Then they came crashing down.

Bernanke’s speech sparked the markets by reiterating the Fed’s plans to buy up mortgage bonds.  He also remarked that further rate cuts (Fed Funds Rate and not mortgage rates) were “certainly feasible”, all but guaranteeing a cut many believe will be all the way to 0%, especially since the Fed had already announced the December meeting would be two days instead of the normal one.

As with any big move, a pullback or retracement needs to occur to balance things out, even if it is just from profit taking.  More pullback is likely to occur in the near future for mortgage bonds, so you can expect Florida Mortgage Rates to climb short term.  The longer term picture looks like mortgage rates could be headed lower, possibly lower than we have seen all year, or even within the last two years.

Leave a Comment

Previous post:

Next post: