Florida Mortgage Rates – Midday Report

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

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  +41bp

Mortgage bonds are up slightly from my special report about an hour ago indicating my temporary change in stance.  Stocks continued their dive this morning and that has allowed money to flow over into mortgage backed securities, sending them higher.  It may be short lived, so don’t drop your guard.

A stronger dollar is sending oil prices much lower today and the earnings report from Macy’s and Best Buy, along with the worldwide fall in stocks, is causing our own stock market to fall yet again, now down over 300 points.  As a result, the money basically has to go somewhere, so mortgage bonds are gaining and sending mortgage rates down slightly.

In about an hour, a flood of $20 billion dollars in Treasuries will hit the auction block, and that may very well be the turning point on the day, so be ready to lock in a moment’s notice.  The charts are still favoring lower prices (higher mortgage rates) despite this morning’s move, so the added supply could likely alter the day’s move and bring mortgage bonds down.  Stay tuned for more action.

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