Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on August 26, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  0bp

Mortgage bonds are flatlining today, with all eyes focused on the upcoming FOMC Minutes release. 

Oil prices are ticking higher slightly on fears of Gustav, the new hurricane currently around Hispaniola.  New Home Sales were slightly lower than expectations, but better than the last report.  Consumer Confidence was considerably higher than expectations.  The Case-Shiller Home Price Index declines 15.4% from a year earlier as well.

Let’s put homes, particularly prices, into perspective.  Data has been showing improvement and if you stop focusing on “year over year” and look at recent history, you will see things are looking up.  There is still a very large inventory, but prices may be stabilizing at this point.  That stabilization, along with fairly benign economic reports, are boosting confidence, and are putting some pressure on the viewpoint of economic concerns.

If the focus comes away from “recessionary fears”, then the focus turns back toward “inflationary fears”, and we will see if that fear will subside later this week.  In the meantime, the FOMC Minutes will be released soon, but don’t expect any surprises, so they market may lie in waiting further.

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