Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 10, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +9bp

Mortgage bonds are managing to inch higher so far today, even with a slightly better than expected Initial Jobless Claims number.  Part of the reason is due to an increase in the trade deficit.  Probably the biggest reason, though, is the Bank of England’s decision to cut their benchmark rate as they fight to stave off a recession.

When to to keep caution in our stance as bonds remain on the overbought side, signaling a need for a correction.  They do remain solidly in their sideways trading pattern and will likely remain there into next week.  The 100-day moving average is moving upwards, approaching the 50-day moving average.  Should the 100-day MA cross above the 50-day, the trading range will begin to shrink.

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