Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 9, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -63bp

Right now, mortgage backed securities are testing their 200-day moving average again.  The DJIA is now down slightly, but basically flat, well off their highs of earlier today and off their lows as well, and mortgage bonds continue to falter.

Emotions, namely “fear”, no doubt induced by the likes of Suze Orman and the media, remain in control of the markets, despite all of the global governments attempts to calm those fears.  And with fear, usually bonds rally, but even bonds, especially mortgage backed securities, are not receiving the benefits, meaning it will be hard for them to get a rally going, especially when the stock market recovers, which it will eventually.

Adding to the problems today for mortgage bonds, there will be an influx of supply this afternoon, which will likely add pricing pressures.  Currently, odds favor higher Florida mortgage rates for now, so locking remains the winning choice.

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