Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on January 5, 2009

Locking Stance: LOCKING    Mortgage Bonds: +38bp

Mortgage bonds opened their first full trading week with a lot of volatility, trading up and down all day in a 95 basis point range, finally ending the day just 38 basis points higher.  The big story was that the Fed was buying.

The day held little in the way of economic data and none typical move the mortgage bond market anyway.  News was all about the Fed buying up mortgage backed securities, along with Obama’s plan for tax cuts.  A very dismal auto car sales report also hit the airwaves, sparking concerns over future job cuts.

What does this mean for Florida Mortgage Rates?  Mortgage rates may yet tick slightly down, but it appears the primary, if not only, buyer of mortgage backed securities is the Fed and that means risk of higher mortgage rates remain.  With the increased volatility and other risk factors, I recommend locking and resting easy at night.

Leave a Comment

Previous post:

Next post: