Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 6, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +62bp

Ask and you shall receive.  That is certainly what traders did and sending the DJIA below 10,000 for the first time in 4 years is not just asking, but rather it is demanding.  It is also working for them as the Treasury and Federal Reserve announced they will do more to appease the markets, so more bailouts or whatever else they can come up with are in store.  Will it ever end?

The Fed nearly doubled its TAF for this week, jumping from around $85 billion to $150 billion, not to mention extending it to 85 days.  The whole solution to the problem is apparently to throw money at it, and they have been doing a very good job of that as we are well into the trillions of dollars level overall.  Our only real salvation is that we managed to bring down nearly every other country in the process, so we aren’t completely destroyed, yet.

And you guessed it, as the DJIA falls, money flows to bonds, and mortgage rates improve.  Mortgage rate pricing is bouncing up and down in another wild ride, but the picture looks good for now.

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