Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 7, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -6bp

Mortgage bonds were down considerably earlier today, all the way down to their 25-day moving average and then bounced off, just as I suspected.  They have now rebounded on more news, this time concerning inflation, or lack thereof.

Feds’ Stern came out to highlight that inflation should abate as the economy continues to weaken and those statements he made are helping bounds move higher right now.  Additionally, oil is off its highs, as are stocks, all aiding in letting money flow back over to bonds’ side of the spectrum.

I am going to hold my locking stance, but those of you further from closing may see floating as a better play right now.  If you are not closing this week and don’t mind some risk, then I suggest floating at this time but with extreme caution as traders’ “mood swings” may yet send bonds lower again.

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