Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 16, 2009

Locking Stance: LOCKING    Mortgage Bonds: -12bp

I delayed this report for a couple of reasons, not the least of which is that I arrived at the hotel in Santiago, Chile about an hour ago and grabbed some breakfast first.  Additionally, I decided to wait until all of the data was released and give you a complete rundown.

First off, yesterday saw another lackluster day in the bond pit, with mortgage bonds ending the day down slightly.  This morning is seeing more selling pressure come into the mortgage backed securities market as stocks are moving higher after bank bailouts and this morning’s data.

The major player of the day was the CPI data and MBS are not reacting significantly to that data as it was fairly tame, with overall CPI coming in above expectations at -0.7% versus -1.0%.  At the core level, it was slightly below expectations, coming in at 0.0% versus 0.1%.  The G.17 data (Industrial Production and Capacity Utilization) both came in slightly below expectations.  And finally, Consumer Sentiment beat expectations, coming in at 61.9 versus 59.0.

What does this mean for Florida Mortgage Rates?  Same old story, while there is pressure for mortgage rates to rise slightly, chances are the Fed will come to their rescue again and keep them fairly steady.  Without the Fed’s interventions, mortgage rates will most likely rise.

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