Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on November 18, 2008

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  +22bp

Mortgage bonds are currently in a mini rally on the heels of Sheila Bair’s, the FDIC chair, remarks that there needs to be an acceleration in loan modification programs to prevent further foreclosures.  Those remarks are from her testimony to the House Financial Services Committee, and that means the odds are more bailouts for homeowners lay in waiting.

I do not believe this rally will be long lasting, but the fact they are currently up at this time leaves the option to float.  Just be ready for any fall out that may occur later when the rally falters.  Of course, the other reason to float for now is the fact mortgage backed securities are now back above their 200-day moving average and there is some hope they can get a boost from the CPI later this week and break out of their trading range.

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