Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 26, 2008

Locking Stance:  LOCKING    Mortgage Bonds:  0bp

Mortgage bonds fell from their highs yesterday, so yesterday afternoon you should have been locking those loans.  This morning, I still think locking is going to be beneficial for most despite the data this morning being bond-friendly overall.  Here is the breakdown of the data released this morning:

PCE:  2.1% overall, 0.2% Core
Initial Jobless Claims:  529K
Durable Goods Orders:  -6.2%
Personal Spending:  -1.0%
Personal Income:  0.3%

The big one this morning was clearly the PCE data, which showed inflation basically “moderating”, though the core level is still of some concern.  We still have Chicago PMI, Consumer Sentiment, and New Home Sales to go as the morning closes out.

Most likely, mortgage backed securities will continue to retrace their gains for a while, so locking is a good choice for now.  If you want to be a little risky and/or you have plenty of time before your closing date, floating may be the better choice as long as bonds do resume their upward movement as they should.  Whether or not mortgage bonds move upward again will depend largely on whether or not the Fed was the only buyer in town.

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