Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 19, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -56bp

And the government comes to the rescue again, for stocks anyway.  With the latest news of bailouts from the government, stocks are through the roof already and bonds have come crashing down.

I will get up a post, over at Florida Mortgage Report, on the whole bailout providing details of the government’s latest move to use taxpayer money to save the world.  As for the future of mortgage rates, just as before, mortgage bond pricing is simply going to deteriorate at the moment, sending mortgage rates higher.

As mortgage bonds’ ended the day yesterday, they looked dead set on remaining “trapped” within their narrow trading range, having closed flat after a steep decline.  With mortgage backed securities dropping again today, that support layer is likely to fail this time.  Time will tell for sure, but I have been recommending locking for a couple of days as it appeared that bond prices were heading lower.

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