Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 3, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: -22bp

Mortgage bonds are again moving lower this morning and even picked up some steam after the release of the ADP Employment Report.  There is still more data to be released, all of which could impact the markets one way or the other.  Keep in mind that even with this morning’s move lower, we are still above support and the long term picture has not changed, at least not yet.

This morning’s ADP release painted another dismal picture for expectations of Friday’s jobs data.  The ADP data showed a loss of 250K, which was much worse than the expectations of -200K and marked the biggest decline since November 2002.  That projects an estimate (usually inaccurate) that Friday’s Non-farm Payrolls will come in worse than the expected -300K, so no real surprise if that happens.

Productivity beat expectations, coming in at 1.3% versus 0.9%, another plus for mortgage bonds.  Still to come today are the ISM Services Index at 10am and the Beige Book at 2pm.

Once again, for Florida Mortgage Rates, this means a short term increase in mortgage rates can be expected, but we should be seeing improvements in mortgage rates soon.

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