Florida Mortgage Rates – FED REPORT

by Florida's #1 Mortgage Planner on September 23, 2009

Locking Stance: CAUTIOUSLY FLOATING  Mortgage Bonds: +2bp

Mortgage backed securities are giving traders whiplash today as they plummeted on the heels of a lackluster 5-year Treasury Note auction and are now rebounding on the heels of the FOMC Meeting Announcement.

One of the highlights for MBS prices going forward is the fact the Fed will continue purchasing mortgage bonds into the 1st quarter of 2010, though the cap is still set at $1.25 trillion.  The Fed clearly sees the need to still support mortgage markets, keeping it liquid and keeping mortgage rates low.  I will have a better breakdown of the Fed’s Policy Statement later over at Florida Mortgage Report.

What does this mean for Florida Mortgage Rates?  Mortgage rates are rebounding now and that will keep them holding steady and may do so for a while.

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