Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on December 4, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +19bp

Mortgage bonds are having another up and down trading day and are about the middle of their trading range right now.  News of overseas central banks cutting rates, Bernanke and Paulson’s speeches, and this morning’s data all have been digested at this point.

Jobless claims beat expectations, but were overshadowed by news of more job cuts.  The main spotlights appear to be on the speeches by Bernanke and Paulson, particularly Paulson’s desire to drive mortgage rates down to 4.5%, which means the Fed will have to keep buying mortgage backed securities until that happens, since mortgage bonds are the only way to bring mortgage rates down. 

What does it mean for Florida Mortgage rates?  Well, Paulson and Bernanke are as determined as ever to “save the world”, even if it costs them everything we have.  Despite history showing otherwise, they continue to feel they need to bailout the markets to get the economy going again.  Funny how the economy is not really reacting to their efforts, except to falter more that is.  But, since they want mortgage rates lower, you can bet they will spend as much taxpayers money as is needed to make that happen.

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