Florida Mortgage Market – Midday Update

by Florida's #1 Mortgage Planner on May 14, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -3bp

I delayed this update to see how the markets would fair, being skeptical that this morning’s CPI data would provide any real strength to bonds.  Alas, I was right, as bonds have been on a roller coaster ride throughout the day, both up and down, including testing their 200-day moving average.

The CPI data was lower than expected and bonds rallied on the news, but stocks are also pressuring bonds.  Technicals aren’t providing any real help, either, so bonds are now solidly below their 25-day, 50-day, and 100-day moving averages, leaving only their 200-day as support.  Not good, except this level is very tough to be broken.

More Fed speeches to go this week, so volatility will likely remain, keeping me in a locking stance until I can see valid enough reason to change.

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