Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 7, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +3bp

Rumors surrounding a rate cut from the Federal Reserve to again appease the markets is sending stock futures higher, which will put pressure on mortgage bonds.  With the global financial meltdown now firmly in place, the rate cuts will not be limited to just our Federal Reserve, rather we will likely see a coordinated effort with central banks worldwide.

As I mentioned in my last report, bonds would likely take a hit today as stocks would likely rebound somewhat.  That looks as if it will be the case at least for this morning, so I have switched stances until we can see just how far they will fall.  I believe they will hold above their 25-day moving average at a minimum, so a longer term float may be worthwhile but I cannot recommend that outright in today’s trading environment. 

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