Florida Mortgage Rates – FED Report

by Florida's #1 Mortgage Planner on October 29, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +3bp

As expected, the Fed announced a 50 basis point cut in the Fed Funds Rate to try and open the spickets on credit.  As is common, though misunderstood, the Policy Statement was more important than the actual decision.  The Fed seemed to have very little concerns regarding inflation and that may have prevented a larger sell off of mortgage backed securities.

Overall, we are seeing what I had expected and mentioned earlier, that is a sell off in mortgage bonds as a result of the Fed’s decision to cut rates.  That means that Florida Mortgage Rates have ticked slightly higher since the Fed cut their rate, though Florida Mortgage Rates are essentially unchanged at this point from yesterday’s close.

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