Florida Mortgage Rates – Morning Market Report

by Florida's #1 Mortgage Planner on September 16, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -12bp

Mortgage backed securities are currently down on the day which brings in a little extra caution.  However, they are currently resting on support and as long as they can hold this level or bounce off, floating will likely be the best bet.

CPI just hit the airwaves and the market has yet to digest this information, or at least react to it, but the results are favorable to bonds, another reason to float for now.  Overall CPI was below expectations, meaning inflation overall is down.  However, just like with the PPI last week, the core levels were right inline with expectations, showing that without the price drop of oil and food, we are certainly not out of the woods yet.

Later today, we will see the Fed’s decision and that is now leaning towards a rate cut.  If they do cut rates, don’t be surprised if the initial reaction is mortgage rates ticking higher, though the move will be seen as another “Fed to the rescue” and likely bring “comfort” to the bond market.

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