Florida Mortgage Rates – FED Report

by Florida's #1 Mortgage Planner on August 12, 2009

Locking Stance: LOCKING    Mortgage Bonds: –41bp

Mortgage backed securities have suffered two additional hits today as a result of the 10-year Treasury Note Auction and now the FOMC Meeting Announcement. 

The 10-year T-Note Auction did not go very well as the bid/cover ratio was fairly low and yields were higher than expected.  The FOMC released their press releases about 18 minutes ago and MBS pricing took a second dive.  I will get a breakdown of the Policy Statement up over at Florida Mortgage Report later today, but here are some quick highlights…

  1. Fed see financial markets improving
  2. Fed Funds Rate remains unchanged at 0.00-0.25%
  3. Fed reiterated the Fed Funds Rate will remain low for an “extended period”

Mortgage bonds are off their lows, but things remain negative for the longer term outlook.

What does this mean for Florida Mortgage Rates?  Mortgage rates continue to tick higher and the outlook continues to favor higher mortgage rates.

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