Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 5, 2008

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: +34bp

Mortgage bonds remain in rally mode and look nearly certain to test the top of their trading range again, and that is good news for Florida Mortgage Rates right now.

There are several reasons for mortgage backed securities to rally today.  First, a Democrat became President as the country voted in Barack Obama, and that means higher taxes lay in waiting, whether hidden or not, just wait and see.  Barney Frank and others already have plans to tax every American as much as they can.

Another reason is that the ADP Employment Report hit the airwaves as the bond market opened and it was worse than expected, coming in at -157K.  This report is known to be off, sometimes way off, in its prediction of the coming Jobs Report, but traders will use this, along with other data, to fuel the recessionary fears and that will help boost mortgage bonds today.

Now, the big question will be whether or not Obama will stick to his campaign promises and the world is waiting for his reaction to the economy.  The good news is that now, more than ever, mortgage planning is going to be needed and that makes my job a lot easier.

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