Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 29, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

As I mentioned as the week drew to a close, the charts were painting a much better picture for lower mortgage rates ahead.  I eluded to it again in this morning’s Mortgage Market Update at Lenderama, even saying that the charts predicted favorable data this week.

Alas, PCE was the major player this morning and its release is mostly favorable, although yearly inflation is still creeping higher, now at 2.6%.  The PCE report was 0.2%, so it is not out of line and that helps mortgage backed securities.

Other data was favorable, though not as impactful on the markets.  Personal Income was below expectations as was Personal Spending.  Overall, the data should help drive mortgage bonds higher, though the caution remains as traders are still trying to figure out the best plays.

More news of bailouts and takeovers occur.  Washington Mutual (WaMu) was seized by the government and handed over to JPMorgan Chase, Buffett bailed out Goldman Sachs, and this morning Citigroup is gobbling up Wachovia.  All this turmoil will still weigh on the markets, but the charts remain favorable to lower mortgage rates ahead. 

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