Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on December 2, 2008

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: -47bp

Mortgage bonds finally succumbed to pressures and fell, providing a needed pullback based on the charts.  There remains room to fall before hitting some support, so mortgage backed securities could fall a little further and then possibly resume their uptrend.

Tomorrow morning will be the prelude to Friday’s Jobs Jamboree, with the release of the ADP Employment Report right at the start of the bond trading day (8:15).  With the Fed remaining determined to be the mortgage bond buyer of last resort as Plosser mentioned in his speech today, bonds have a good reason to rally, along with the flood of data flowing in MBS’ favor.

What this all means for Florida Mortgage Rates is this.  In the short term, mortgage rates will likely tick a little higher.  After that, supposing data and news keep flowing, mortgage rates should begin to head lower, quite possibly to the lowest levels we have seen in over two years.

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