Florida Mortgage Market – Afternoon Update

by Florida's #1 Mortgage Planner on March 18, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -75bp

The mortgage bond market finally digested the news of the Fed rate cut and, as we mentioned earlier, they are now heading lower.

Bonds had pushed higher briefly and tested overhead resistance as we thought they might, but we stayed in a locking stance today as we figured the Fed rate cut would send bonds lower as is typically the case.  While the markets remained benign for a while, they are now spirally down quickly.  In fact from the time we wrote the -75bp above until now, they continued to drop to -91bp on the day (less than 2 minutes).

Volatility remains in the market, so lock ’em before rates get worse if you haven’t already.

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