Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on December 9, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +28bp

Sorry about the midday post (forgot to push the button to upload the post), but I will recap things here.  Overall, mortgage bonds had a fairly good day, especially since there was no “real” data to digest.  So what got them moving?

Stocks opened lower and stayed down, ending the day at just over -240 for the DJIA.  Pending Home Sales was reportedly down 0.7%, beating expectations of being down 3.0%, and interestingly, Florida and California (the two weakest areas) were stronger.  It is still too early to call the bottom yet, but things are looking much better.  Oil prices also dropped today, which accounts partly for the loss in the stock market.

The Treasury auctioned off $30 billion in 4-week bills which actually took the yield to below 0% after factoring expenses, weird indeed.  That means that traders are looking to store cash in any vehicle they think will simply keep them from losing their shirts.  That helped boost mortgage backed securities a bit.  The Treasury will auction off 3-year notes and 10-year notes over the next two days.  The Fed has also stated they will have two auctions for their TAF.

What does it all mean for Florida Mortgage Rates?  With mortgage bonds hitting resistance, mortgage rates will likely hold steady, or possibly even tick slightly higher until Friday.  With the Retail Sales report hitting the airwaves Friday morning, and possibly even the Initial Jobless Claims on Thursday, mortgage bonds may be able to break through the “ceiling” and send mortgage rates lower.

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