Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 14, 2009

Locking Stance: LOCKING    Mortgage Bonds: +10bp

Mortgage bonds had a nice jump this morning off the horrendous Retail Sales data this morning, but they banged their head against resistance and have fallen back already.

Retail Sales this morning came in at -2.7% and when you take out autos, it was down 3.1%, both far worse than was expected.  Despite the fact that the data favors mortgage backed securities, mortgage bonds have been unable to hold the gains achieved off the news.  The day is still young, but it will likely take the Fed to keep the markets propped up.

Speaking of the Fed, yesterday saw $3.5B in buying activity from the Fed and Bernanke keeps promising more to come.  His statements held more to what my beliefs are, which is that they want to keep rates about where they are right now, not necessarily any lower.

What does this mean for Florida Mortgage Rates?  Once again, expect mortgage rates to hold steady, but there is a slight chance of them edging a little lower today, especially if the Fed keeps buying.

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