Florida Mortgage Market – Afternoon Update

by Florida's #1 Mortgage Planner on May 21, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -22bp

Bonds are holding their ground right now, most importantly remaining above their moving averages.  Since bonds had moved significantly (about 150bp), a correction was due.  The move lower today was fueled on inflationary fears in the form of higher oil prices mainly. 

The FOMC Minutes showed little chance of the Fed lowering rates again, even if the economy continues to weaken, which is good news for bonds.  As the oil spill over settles down, bonds could be looking to move higher, so I am still going to favor floating, so long as they remain above their MAs.

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