Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 9, 2009

Locking Stance:  LOCKING    Mortgage Bonds: -3bp

Mortgage bonds are going to continue to come under selling pressures as Congress works to cram down a new stimulus package.  Democrats want all kinds of spending and that is exactly what came out of the House, where Democrats can cram anything down our throats.  In the Senate, Republicans still have a little clout and they added some additional tax breaks which may actually be what helps the economy.  Nevertheless, any stimulus package will likely benefit stocks and send bonds lower, thus mortgage rates higher.

As for data plays, the only thing we are looking at is a Treasury Auction this afternoon which will bring in some supply issues.  Beyond that, nothing much happening and technical factors and news will rule the day, which is not a good thing for mortgage bonds overall.  MBS are below their 50-day moving average in a downtrend that only leaves a potential correction based on stochastics as a good sign.

What does this mean for Florida Mortgage Rates?  Expect mortgage rates to continue their climb higher and maybe they will stay flat if we are lucky.

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