Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on February 2, 2009

Locking Stance: LOCKING    Mortgage Bonds: +31bp

MBS had a pretty good day as the afternoon’s news unfolded, sending mortgage bonds into a corrective period.  It remains to be seen if the Fed was the major player in this move, but there was some foreign participation as well. 

The data was certainly favorable, with PCE showing inflation within the Fed’s comfort zone and the ISM Index still showing a contracting economy, though it did beat expectations.  Personal Income and Personal Spending were both down, signifying not only are people making less, but they are actually saving more for a change.  This afternoon’s Treasury Auctions went well, with a significant level of demand, but yields are still being pushed higher, which will spill over into the mortgage rates eventually.  No need to worry just yet, as yields are only 0.27% for the 3-month and 0.39% for the 6-month, but the zero bids are gone.

What does this mean for Florida Mortgage Rates?  We are likely seeing the correction I have talked about, whether it was mostly the Fed driving prices higher or not.  For the near term, mortgage rates may tick slightly lower, but the longer term outlook remains favorable for higher mortgage rates.

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