Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 20, 2009

Locking Stance: LOCKING    Mortgage Bonds: -25bp

Mortgage backed securities are off to a bad start, though they are off their lows already.  If you read my weekly Mortgage Market Update, you would know that mortgage bonds will likely be under selling pressure, but that the Fed will also likely intervene in an attempt to maintain low mortgage rates.  That appears to be happening.

There is no data scheduled to be released today, but there are some T-Bill auctions later today that could affect demand.  The dollar is getting stronger today as Barack Obama gets inaugurated and the hope of better days floats through the markets.  Those hopes will likely rally stocks and that will pressure mortgage bonds, and mortgage rates, with the Fed remaining as a sole buyer.

What does this mean for Florida Mortgage Rates?  Mortgage rates will see pressure to rise, but I expect the Fed to be their “savior”, keeping rates relatively flat.

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