Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 13, 2009

Locking Stance: LOCKING    Mortgage Bonds: +3bp

Mortgage bonds held mostly flat, bobbing up and down a bit during the trading day, before closing down 3 basis points.  No major data plays for today, so news and technicals should remain in the driver’s seat, though Bernanke gave a speech over in London about an hour ago.

Mortgage bonds remain well within their sideways pattern and it seems the Fed’s actions are focused more on maintaining rates than driving them lower as they are “behind schedule” as far as what they announced their intentions to be.  It could simply be that they will remain on the sidelines, ready and willing to prop the markets when bad news or unfavorable data comes into play.  It begs to question whether or not they are expecting bad news soon as well.

The auctions of the 3-month and 6-month T-Bills were an improvement of sorts over last time.  The 3-month auction came in at 0.120% with a 3.19 Bid/Cover indicating stronger demand.  The 6-month had a similar Bid/Cover at 3.20, but they rate was considerably higher at 0.290%.  Today will be the auctions of the 4-week (1-month) and the 52-week (1 year) T-Bills.

The only data this morning was the International Trade report and that showed the trade deficit narrowing sharply to $40.4B.  While an improvement, global demand is still down and that means the global recession is still ongoing.

What does this mean for Florida Mortgage Rates?  You can expect mortgage rates to hold steady for the foreseeable future as the Fed will likely intervene should rates begin to climb. 

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