Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 24, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +6bp

Fear is expected to grip the markets yet again in the USA as the UK’s economy shrinks for the first time in 16 years, sending stock futures to the bottom (lowest they can go before the opening).  Despite stock futures hitting rock bottom, mortgage backed securities are only inching out a slight gain, which is somewhat disturbing.

Currently, the DJIA is expected to drop 550 points at the open based on those futures and mortgage bonds are basically flat.  That is not a good sign for Florida Mortgage Rates.  Add to the fact that Treasuries are climbing dramatically and you can see mortgage bonds are not feeling any “love” right now, so Florida Mortgage Rates can be expected to climb.

The fact the 10-year T-Note is up 125bp and the FNMA 6.0% coupon bond has only inched up 6bp is further indications as to the need to use a mortgage professional that bases rate lock decisions on the proper securities.  With the volatility in the markets these days, that fact has become extremely important.

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