Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 28, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +16bp

Mortgage bonds had a nice run yesterday afternoon, but were driven back down to end the day below their 25-day moving average and within their sideways pattern.  The Treasury auctions yesterday, particularly the 2-year T-Note, were met with strong participation and that kept yields low, which is good for mortgage backed securities, and thus, mortgage rates.  Of course, Consumer Confidence hitting record lows certainly didn’t deflate mortgage bonds.

This morning, we already saw the release of the MBA Purchase Applications report.  The report was skewed a bit by a shortened week last week, and purchase apps fell by 2.9%.  With such a small drop, in light of the short week, those numbers were good.  However, refinances were down 48%, which is not as good for mortgage professionals.

Still to come, we will see the release of Crude Inventories and this afternoon will be the big announcement, the FOMC decision on any changes to the Fed Funds Rate.  With the Fed running out of ammo in this department, yet still willing to pull out all the stops, it will be interesting to see their announcement.  Remember, the Policy Statement is usually much more important to the markets than the actual decision or rate change.

What does this mean for Florida Mortgage Rates? You will likely get better mortgage rates this morning, but this afternoon could change the picture entirely.  Check back this afternoon as I will certainly be providing another update today, after the Fed’s release.

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