Florida Mortgage Rates – Midday Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  -25bp

Well, today is one of those days where I hate that I was right.  Mortgage bonds are lower, though not real significantly, on a day when they should be higher.

Despite this morning’s favorable data, stocks rose and bonds faltered out of the starting gate.  Bonds are in the middle of today’s trading range, but being down is of great concern for Florida Mortgage Rates moving forward.

Fed President Lacker is trying to talk them up as he spoke about economic weakness lasting at least until the middle of next year, not to mention higher unemployment rates to come.  He even mentioned what I already expected, that the Fed would likely go to 0.0% on the Fed Funds Rate like the Japanese did.

So why are mortgage backed securities heading lower?  Technicals are back in the mix, this time beating out data.  If you read my reports over the last few days, you knew that mortgage bonds were hitting the top of their trading range and that would be hard to break out.  I mentioned yesterday that today’s jobs data would give bonds their best chance to breakout to the high side (lower mortgage rates), but they are failing which means we will be seeing higher mortgage rates to come in all likelihood.  I will get into that more in next week’s Mortgage Market Update over at Lenderama.

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