Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 19, 2008

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  +9bp

The CPI was just released and it came out slightly lower than expected even at the core level, meaning producers have yet to be able to pass along costs to consumers.  Is that really any wonder since consumers don’t have any money to spend and retailers are screaming for business with many deep discounts?  Overall CPI was only slightly lower than expectations, coming in at -1.0% versus -0.8%.  The key figure, core CPI, was also slightly below expectations at -0.1% versus the expected 0.1%.

With inflationary fears being able to settle down and allow traders to focus on recessionary numbers instead, not to mention the increased fears of deflation across the board, mortgage bonds “should” trade higher throughout the day.  As mortgage bond prices push higher, their yields drop and that translates to lower Florida Mortgage Rates for you as MBS are what drives those mortgage rates as I have mentioned many times before.

Don’t get too settled in to what mortgage bonds “should” be doing.  Lately, we have been seeing MBS trade opposite what they should or simply remaining “on the sidelines” as the day progresses and that may very well be the case today.  I am going to hold my current stance only because lenders haven’t priced for the day yet and we may see a rebound around the time stocks open.  If that doesn’t happen, you will see a change in stance quickly posted.

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