Florida Mortgage Daily – Morning Update

by Florida's #1 Mortgage Planner on March 10, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -19bp

As we mentioned in the Forecast for the Week post, we delayed this first update of the day in order to provide better guidance for you.  That decision turned out to be a smart one.

Mortgage bonds jumped higher at their open, a move we expected, but our skepticism as the charts were looking a bit ugly kept us from changing our stance.  Bonds have subsequently dropped, but do remain above their 200-day moving average, so a cautiously floating stance with a very "itchy trigger finger" is what we suggest right now.

The reasoning behind the move, since there is no data scheduled today, is more talk of the Fed cutting rates by 75bp in an emergency meeting.  Bonds do not like the Fed rate cuts much as it allows inflationary risks to arise, so mortgage bonds are going to be under some pressure.

Check back regularly for more updates as the day goes on.

Leave a Comment

Previous post:

Next post: