Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 7, 2009

Locking Stance: LOCKING    Mortgage Bonds: -25bp

As with any big move in the markets, a retracement needs to take place and that appears to be happening this morning.  One bit of data released right as the bond market opened was rather dramatic and favorable to mortgage backed securities.

The report I am talking about is the ADP Employment Report which comes out the Wednesday before the Jobs Jamboree and gives a preview of what to expect on Friday in the jobs data.  The ADP report is, however, a fairly inaccurate preview and jobs data sometimes misses by a long shot to either side, so it is not as big a player as one might expect.  This morning’s data predicts Friday’s Non-farm Payrolls to come in at -639K, a number which would normally send mortgage bonds higher if it actually happens.

We also have Crude Inventories coming up, but that seldom makes a measurable impact on the markets.  Stocks look to open lower, partially based on the ADP report, and oil prices are slightly down.  Bank of America’s CEO, Kenneth Lewis, also announced 2008 results would be worse than expected, adding selling pressure to stocks, along with Alcoa’s production cuts.

What does it mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady today, if not edge slightly higher as bonds’ retrace their steps.  Knowing the Fed, they will be back to prop the markets, but that does not mean lenders will pass the “savings” on to consumers.

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