Posts Tagged ‘mortgage bond’


Mortgage Rates February 4, 2009

   Posted by: Cal    in Gulf Coast Mortgages

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There is a lot of volatility in daily trading in the mortgage bond market, and since the main stream media always gets it wrong, I have included visual aids for you to see exactly what mortgage professionals see.

What you see below is a 30 day chart of the FNMA 4.5% mortgage bond trading activity.  The activity on the bond market is what dictates retail mortgage rates, and the retail mortgage rates that are passed on to consumers are generally .5% to 1.0% higher than the "coupon" rate of the bond itself.  We are now following the 4.5% coupon bond because the activity in the 4% bond has trickled and

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Christmas is near and Santa’s elves are hard at work delivering low mortgage rates for all the good boys and girls.  The Fed meets tomorrow and Wednesday with the expectation of dropping the federal funds rate by .50% virtually a lock.  In addition, analysts say there is nearly a 70% chance they will drop the federal funds rate by .75%.  Since the Federak Funds Rate is already at 1%, they are getting closer and closer to paying financial institutions to take money (wink, that will never happen).

Since the immediate reaction in the mortgage market to a reduction in the federal funds rate is often negative, be prepared for some volitility in the mortgage bond market this week.  The rates below are as of 4:00 Central Time on 12/15/08:

  • 5.000%  30 Year Fixed
  • 4.875%  15 Year Fixed
  • 5.000%  30 Year Fixed FHA
  • 5.000%  30 Year Fixed VA

For more information about your loan, call Steve Russell with Primary Residential Mortgage at 850-221-8334.  Or visit

*Rates are subject to change without notice.  Click here for the specifics on the rate quotes listed above.

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