Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 6, 2010

Locking Stance: LOCKING    Mortgage Bonds: +53bp

I certainly hope that you did not lock earlier today on the heels of the “gurus” saying to lock ahead of the Jobs Report tomorrow.  If you did, you lost out big time, losing several hundreds of dollars, if not thousands of dollars.  That being said, I think the rubber band has been stretched far enough and the snapback, or corrective move, is likely already begun.  Just make sure that your mortgage originator (or you as a mortgage pro) have received updated rate sheets from their lender before you do so.

The main reason for this huge rally today was that fear continues to grip the stock markets, and fear is the most powerful of emotions.  With the Greek debt crisis, along with Portugal and Spain, still making waves, fears are growing that the debt issues will spread across Europe.  These fears have sent our own Dow Jones Industrial Average down nearly 1,000 points today and that “flight to quality” is sending MBS prices ever higher.  But alas, all good things must come to an end.  With the significant move higher and the stochastic indications well into the overbought spectrum, coupled with the pullback from their highs today, MBS prices will probably take a breather and pull back further before attempting any more.  That could be a wrong statement, but they risks are now getting too great to simply float.

What does this mean for Mortgage Rates?  Mortgage rates took a nice dip lower this afternoon and saved hundreds if not thousands of dollars for those whom elected to float against the “herd mentality”.  Now is time to lock in those savings and be happy.

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