Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on March 4, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -16bp

Mortgage bonds are still trending lower in the short term, but things have not gotten ugly for the longer term as of yet.  If you have a longer time frame before closing, you may still want to float as long as bonds remain above their 100-day MA.  Our general stance remains locking loans, especially for those closing soon, due to the 25-day MA crossing below the 50-day MA.

Mortgage bonds will be lacking any significant data and will take direction from the mostly from other news and technicals.  With Citigroup having serious issues, bonds are retreating.  This retreat may be a temporary correction, or it may prevent the full "W" formation we eluded to previously. 

Currently, the 25-day and 100-day MA gap is shrinking, so bonds will need to break through one side or the other in the near future.  Keep in mind that data coming out later this week could fuel recessionary fears again, sending bonds higher.  Of course, that same data could swing the fear back to the inflationary side as well.

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