Florida Mortgage Rates – Special Report

by Florida's #1 Mortgage Planner on January 5, 2009

Locking Stance: LOCKING    Mortgage Bonds: +16bp

Mortgage bonds got off to a good start this morning, but are already retreating from their highs.  The Fed has started purchasing mortgage backed securities this morning and will report on their progress towards the $500 billion limit every Thursday.  Until then, there is no way of knowing exactly how much the Fed purchases are propping the markets, but with the pullback this morning may very well be showing the Fed is the only buyer at the moment.

What does this mean for Florida Mortgage Rates?  As the Fed begins to buy mortgage bonds, in their efforts to drive mortgage rates lower, or at least keep them at these levels, mortgage rates will likely remain somewhat steady.  The uncertainty of the Fed’s ability to succeed makes locking a safe bet and only those willing to take risks should even attempt to float right now.

Leave a Comment

Previous post:

Next post: