Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 10, 2008

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: -9bp

Mortgage bonds this morning are making a slight pullback, and they may even pullback further.  As long as they stay above support levels, this is no reason for concern and is expected.

Oil prices have jumped this morning and most likely will give a boost to the stock market, which will place selling pressure on mortgage backed securities.  The Treasury will be auctioning off $28 billion in 3-year T-Notes this afternoon, so there may be market reaction around that time (1pm).  Beyond that, the auto (Big 3) bailout plan may see a vote this afternoon in their second attempt to gain some of the “free-flowing” money.

What does it all mean for Florida Mortgage rates?  The broken record continues for now.  Mortgage rates may yet tick slightly higher, but the longer term outlook is for mortgage rates to fall, especially if the Treasury keeps their desire for 4.5% mortgage rates and maintains the “blank check” they have been given. 

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