Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 19, 2008

Locking Stance: LOCKING    Mortgage Bonds: -34bp

Has the bubble burst already?  Just kidding.  As long as the government is willing to print money to no end in order to keep buying up mortgage backed securities, the bubble will not have burst.  However, it is interesting to note that the central banks around the globe, namely the Bank of England, Bank of Japan, Swiss National Bank, and the European Central Bank are joining the Fed in the TAF auctions (Term Auction Facility).  Are we running that low on greenbacks?

There is no economic activity scheduled to be released today that typically affects mortgage bonds.  That puts news and technical indications at the forefront, especially news.  We have what they call a “Quadruple Witching Friday” today as well, so get out your barf bags because volatility will likely be through the roof, always a fun ride.

On the technical side, we are wedged in a narrow trading range with stochastic indications in the overbought spectrum and a negative stochastic crossover occurring.  Mortgage bonds are ripe for a correction, the only question being how much, or will it be a trend reversal.  Let’s just see how far we can stretch that rubber band before it snaps back and hurts us.

What does this mean for Florida Mortgage Rates? Just lock that loan and don’t worry about it because you are not likely to see significant, if any, improvements on mortgage rates (or pricing) in the near future.  Things do change, and I will let you know if they do.

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