Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 30, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -9bp

Mortgage bonds look like they are struggling to keep their head above water and not sink further this morning.  Data this morning includes the GDP and GDP Chain Deflator along with the weekly Initial Jobless Claims report.

The GDP and its Chain Deflator both exceeded expectations which is not generally good for mortgage backed securities, nor Florida Mortgage Rates.  GDP itself came in at 4.2% versus an expected 4.2% and the Chain Deflator came in at -0.3% versus an expected -0.5%.  While they both beat expectations, the amount was fairly marginal.

Initial Jobless Claims came out at 479K versus an expected 473K, so they were slightly higher.  However, the four-week average dropped slightly to 484,750 and is slowly dropping from its peak of 499K last month.  Certainly this does not mean that the jobs market is getting any better, simply that it is not getting quite as bad as expected.

Back to the technical side of things and we can see mortgage backed securities struggling to hold at their support layer.  It will be difficult at best if stocks open as they are projected with futures pointing higher.  The normal relationship is that bonds and stocks fight for the same money so when one is up, the other is down.  Of course, we are not in a typical trading environment as emotions still control the markets for the most part.

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