Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 24, 2008

Locking Stance: LOCKING    Mortgage Bonds: +12bp

Mortgage bonds had some more welcome data as the numerous reports out this morning all favored mortgage backed securities overall.  There is likely some more upward movement in bond pricing to be had today, but don’t expect significant gains, nor significantly better pricing.

Personal Consumption Expenditures was the major player of the day, and it was not bad, coming in at 0.0% at the core level and that brings the annual rate into the Fed’s comfort zone.  It also marks another month of disinflation (not deflation, there is a difference). 

Other data coming in were Initial Jobless Claims which were worse than expected again, coming in at 586K and that marks the highest in 26 years.  Personal Income was below expectations of 0.0%, coming in at -0.2%.  Personal Spending, however, was above expectations of -0.8%, coming in at -0.6%.  Durable Goods Orders also beat expectations, coming in at -1.0% versus the expected -3.1%.  Crude Inventories will be the last report and that is due out at 10:30.

What does this mean for Florida Mortgage Rates?  Chances are that mortgage rates will remain steady today.  While there is potential for better pricing later today or beyond, the risks are generally not worth it in today’s environment for the same reasons I mentioned before.

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