Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on December 4, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +31bp

Mortgage bonds managed to edge out a 31 basis point gain on the day, which will let Florida Mortgage rates tick slightly lower in the morning.  That is unless the Jobs Jamboree, or something else, surprises the markets. 

Between Bernanke and Paulson wanting to do even more to stop foreclosures and drive down mortgage rates, no matter what the cost (or even the consequences), it will be interesting to see what mortgage bonds and mortgage rates can do.  Will mortgage backed securities be the next “bubble”, this time artificially created by none other than our government?  Certainly looks like it if Ben and Henry get their way.

What does it mean for Florida Mortgage Rates?  So long as the government, namely Paulson, has an open checkbook and the desire to drive mortgage rates lower, you may as well float and see just how low they can go.  Be extremely cautious though because once the Fed backs down, rates may spike very quickly if there are no other buyers around.

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