Florida Mortgage Rates – FED Report

by Florida's #1 Mortgage Planner on December 16, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +100bp

I find it rather funny that I had been contacted by several whom thought I was crazy recommending floating even when others were rushing to lock loans.  As I have mentioned, the charts just didn’t show that one needed to rush to lock loans, unless of course they were within a few days of closing and had to.  If you have been following my advice, chances are you are happy right now, but here is where it gets really tricky and you should read this post also…

Will Mortgage Rates Be the Next Bubble?

 

OK, back to the market analysis.  What happened is that the Fed released their decision on rates.  In this morning’s report, I stated that mortgage rates would not move until the decision was announced, and that is what happened, and in a big way.  Did the markets care about the Fed decision?  Absolutely not, rather they focused on the more important release, the Policy Statement.  The Federal Reserve again stated their desire to join Pimco in buying up mortgage backed securities, allowing Pimco to profit greatly (I wonder what scandal will come about here).

What does it all mean for Florida Mortgage Rates?  Mortgage rates are dropping like a rock right now, but the end may be closer than anyone thinks.  For now, float and take the gains, but there is a good chance you will want to lock later today, if not sooner.

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