Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on December 18, 2008

Locking Stance: LOCKING    Mortgage Bonds: +16bp

Mortgage backed securities had another whipsaw day, being up, down, then finally ending the day up 16bp.  Data flowed today with eyes focused mostly on the Philly Fed Index, though Initial Jobless Claims is usually looked at as well.

As I mentioned, Initial Jobless Claims was basically inline with expectations.  However, both LEI and, more importantly, the Philadelphia Fed Index, beat expectations.  The Philly Fed beat expectations fairly dramatically, coming in at -32.9 versus expectations of -40.0.

Elsewhere, oil prices dropped, as did stocks across the board, and that helped boost mortgage bonds as the day came to a close.  President-elect Barack Obama is reportedly ready to announce the next bailout plan, which is currently valued at around $775 billion, though President-elect Obama will try to keep it under $1 trillion.  I hope they do realize that this isn’t monopoly money and that there are dire consequences to printing as much money as they have been.

What does this all mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady around this level, possibly moving slightly higher or lower in the near term, but not significantly without some major news.  As for lower mortgage rates, I still don’t expect to so much, if any, improvement over the lows we have already seen.

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