Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 8, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +97bp

The government takeover of Fannie Mae and Freddie Mac is throwing everything out of the window regarding charts.  The sentiment in the market is very clear, and the government is currently getting the desired results from the takeover as mortgage bond traders are gobbling up bonds at somewhat alarming rates, sending mortgage rates lower.

I have been talking about the government taking over lending, including Fannie Mae and Freddie Mac for some time over at the Florida Mortgage Report, and now it has officially happened.  Any move of this magnitude will see a retracement eventually, so caution needs to be used, but for now, mortgage rates are benefiting from the takeover.

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