Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 2, 2009

Locking Stance: LOCKING    Mortgage Bonds: +22bp

The first trading session of 2009 looks to be favorable for mortgage backed securities and mortgage rates.  But we have yet to see the first set of data of the new year, the ISM Index, and it is usually a big player to the markets.

We have seen a lot more volatility this week than last, so today may be no different as Monday will mark the return in full force of traders.  I hope everyone had a wonderful New Year’s celebration, because the party may be ending soon for mortgage rates, that is once the Fed is content with how much they propped the markets and wasting more of your hard earned money to do so. 

The first in what is likely to be many tax increases (or at least lack of extensions of tax cuts) is hitting the airwaves to start the new year.  The proposal is a $0.10 per gallon tax hike, on top of the already in place $0.18 per gallon tax.  At the gas station on my corner, where gas is currently $1.61, and all else remains the same, that tax would bring a gallon to $1.71 and include a tax rate of 16.37%, not inclusive of the local taxes which bring it higher.

As for mortgage rates, you may want to check out this post I did over the holidays, namely on my flight back from Brazil, talking about what may very well be the future of mortgage rates.

What does it all mean for Florida Mortgage Rates?  Mortgage rates will likely continue to remain steady today and for the foreseeable future.  The future, near and long term, is not as clear as government intervention may or may not be successful in lowering mortgage rates further.  The long term outlook is for higher mortgage rates.

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