Florida Mortgage Rates – Special Report

by Florida's #1 Mortgage Planner on July 23, 2009

Locking Stance: LOCKING    Mortgage Bonds: –42bp

As I mentioned earlier, things change in this market rather quickly and mortgage backed securities have now pierced through their support and are falling like a greased brick.  Unless they manage to find strength somehow, this could be the end of the good news and a downtrend will begin.  Fortunately, it is still too early to tell that for sure, but things just got ugly.

So what happened?  Well, Existing Home Sales was released and stock traders went on a buying spree as Existing Home Sales came in better than expected.  While the numbers did not beat expectations by much (4.89M versus 4.85M), remember that I said traders will grab hold of even a breadcrumb’s worth of news and run with it.  The report showed the monthly change at 3.6% and the annual change came up to –0.2% from last month’s –3.6%, so the trend is going in the right direction.  With stock traders on a buying spree, they have to take money from bonds to make it work, so MBS pricing has fallen dramatically, though hope is not lost, not yet anyway.

What does this mean for Florida Mortgage Rates?  Mortgage rates are going up today and the outlook has changed once again, this time for the worse.

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