Florida Mortgage Rates – Morning Report

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

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: -6bp

It will be an interesting day today as mixed “pressures” hit the markets.  Central banks around the world have cut their equivalents to our Fed Funds Rate, sparking global stock market rallies.  News hitting the airwaves of job losses at AT&T, along with oil prices dropping still, will add to the blend.  Mortgage bonds were down more earlier, but are off those lows.

Initial Jobless Claims is the only data slated for release this morning, which came in as a bit of a surprise.  Jobless claims actually dropped this week, albeit still dismal, to 509K, and beat expectations of 525K.  Those numbers, while beating estimates, will not matter much since AT&T announced cuts of 12,000 this morning.  Tomorrow’s Jobs Jamboree will be the key to market trading.

Paulson, the man who not too long ago stated publicly that he would not need the full $700 billion of the bailout money is now saying he may ask for it all.  That opens the door for Paulson and Bernanke to ask for even more money, begging the question as to when is enough enough?  Add to that the fact that history shows government interventions merely prolong the problems, that should virtually guarantee the recession will last a long time.

For Florida Mortgage Rates today, I will repeat what I said yesterday.  Short term, mortgage rates may tick down slightly still, but the longer term picture offers the potential of lower mortgage rates.  Tomorrow’s jobs data may change that picture significantly.

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