Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 28, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -25bp

Mortgage backed securities have been down from the start of trading as stock futures look to a higher open on the heels of the beginning of the FOMC Meeting.  The FOMC Meeting is Bernanke and buddies getting together to decide on where to take the Fed Funds Rate, though their decision will not be released until tomorrow afternoon, along with their Policy Statement which is, in many cases, more important than the decision itself.

With the expectations of a 50 basis point cut in the works, stocks are likely going to push higher unless other news can knock them down.  When stocks climb, mortgage bonds tend to fall.  Also, when the Fed does make a rate cut decision tomorrow, you can expect Florida Mortgage Rates to move in the opposite direction, at least initially.

The only data due to be released today is Consumer Confidence, and we already have an idea what that will be if you have been following the markets at all.

Looking at the charts, mortgage bonds are about in the middle ground between resistance and support, so there is plenty of movement either way before hitting a barrier.  With the downtrend in place, don’t be surprised if we see a move higher in the next day or so, followed by a resumption of lower prices to retest their lows of July and about two weeks ago.

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