Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on September 12, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -25bp

Yes, you read it right, I am still in a cautiously floating stance despite mortgage backed securities being down 25bp, 9bp below my last mortgage rates report.  Actually they dropped to about -41bp on the day briefly and some lenders may have repriced already.

OK, why am I holding my stance?  Well, it takes a catalyst of some sort usually to break below support and the support I am talking about has held up test after test after test in recent days.  Since bonds have dropped to this support level 3 times before and bounced off, chances are they will repeat that bounce (have so far) and we will see better pricing ahead.

With nothing to push them below this support, especially with data favoring their bounce, I feel comfortable in maintaining the floating stance for now.

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