Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on March 19, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +44bp

Mortgage bonds got destroyed as expected yesterday, but they held above their 50-day MA, a now important support layer.  That keeps them within a trading range between the 50-day MA and their Feb. 1st high price, which is a good place to be right now.

As such, bonds are enjoying a rebound rally today.  This rally is being fueled by an overseas credit crisis primarily.  There isn’t much else on the news front and the only economic data due out is crude inventories, which generally do not move the markets much.

We do want to remain cautious as bonds are entering an overbought condition according to stochastics, but the risk/reward appears to favor floating right now.

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