Florida Mortgage Rates – Special Report

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

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

Mortgage bonds did what I expected this morning, dropping further out of the starting gate, which possibly completed the retracement.  After the drop, they rebounded and ended the day up 16 basis points.

This morning’s data was completed with the release of the Chicago PMI and New Home Sales, along with Consumer Sentiment.  Chicago PMI was below expectations, coming in at 33.8 versus 38.5.  Consumer Sentiment was a dismal 55.3, also below expectations.  And finally, New Home Sales were the lowest on record, coming in at 433K.

Once again, we are seeing plenty of data flowing in that is favoring mortgage bonds and lower mortgage rates.  However, we have seen data do nothing for mortgage bonds movement and we still see that occurring for the most part as one would think bonds would have rallied more even today.  Instead, most of the movement the last two days have been based on yesterday’s Fed news. 

The market is now closed as we head into the Thanksgiving weekend.  Data will resume on Monday and we will have an action packed week.  The good news is that bonds have broken above their trading range and lower mortgage rates appear to be in order.  Next week, with the data flowing, we will find out if mortgage bonds can break above the year’s highs and send Florida Mortgage Rates lower than we have seen in 2008.

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