Florida Mortgage Market – Forecast for the Week

by Florida's #1 Mortgage Planner on March 17, 2008

Just as last week was a crazy one, this week will likely be as well.  There will be plenty of market moving action this week, with the big event being the FOMC Meeting and the announcement of yet another rate cut on Tuesday.  The consensus right now is another .75%, with some demanding 1.00%.  Remember that rate cuts generally push mortgage rates higher.

We already saw this morning’s news about JP Morgan taking over Bear Stearn’s for $2 a share, which has benefited bonds.  The remaining events of the week will be the FOMC Meeting, news on the manufacturing and housing sectors, and likely more Fed intervention news.

To start the week, we will be in a cautiously floating stance as we already mentioned.  Bonds are apparently in a nice trading range between their 200-day and 50-day moving averages, currently sitting on the high side of this range, so we may be switching to a locking stance shortly.

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