Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 3, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +25bp

What a wild ride bonds had yesterday on the heels of a better than expected ADP jobs report placing bonds in a downward motion.  The report provides a inaccurate forecast for the Friday’s jobs data, but is used as a “gauge” by traders and this one was hinting Friday’s numbers would beat expectations.

This morning, however, Initial Jobless Claims were greater than expected, so bonds are higher on the news.  Keep in mind that the Jobs data in the ADP and to be released Friday are last month’s data while the IJC data is last week only.

Bonds managed to remain above the floor level of the 50-day MA, so we could be looking at another move higher.  Tomorrow’s Jobs data will be the key to where bonds head and if they can hold this trading range.  So, we are going to suggest floating today unless bonds make a beeline for the 50-day MA again. 

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