Florida Mortgage Rates – Morning Report

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

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: 0bp

Today is a busy day for data and news, data namely being the CPI and later this afternoon’s Fed decision on the Fed Funds Rate.  Most of the data was released earlier, with only the Fed to go at 2:15pm.

Mortgage bonds are trading within a fairly narrow range, having been both above and below flatline already.  CPI was below expectations at both levels, leading traders to think inflation may be in check, but is it really.  More on that in a day or two over at Florida Mortgage Report.  Today will contain a post about how we could be seeing the “mortgage rate bubble”, so check there this afternoon.

Getting back to data, overall CPI came in at -1.7%, worse than the expected -1.3%.  At the core, CPI was flat at 0.0% while expectations were for 0.1%, so not much of a miss.  Housing Starts and Building Permits were also released this morning and they were both at record lows, coming in at 625K and 616K respectively.  All I can say is it is about time this happened.

What does it all mean for Florida Mortgage Rates?  Mortgage rates are not likely to change much this morning as traders of mortgage backed securities will likely not make serious moves until this afternoon’s Fed decision.  Just remember that a cut in the Fed Funds Rate does not equal lower mortgage rates.  In fact, if the Fed cuts their rate, you may very well see mortgage rates rise.

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