Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 16, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +12bp

Yesterday, we saw inflationary fears grip the markets as inflation at the wholesale level spiked.  This morning saw a look at inflation at the consumer level and it came in as expected, even at the core level.

Bonds are trading a bit higher today on the news as inflation fears subside a bit.  It is important to note, however, that they are below their 25-day moving average and failure to climb back above will solidify this as a ceiling and signal the breakdown of the current trading range.

Additionally, bonds are hanging around their 100-day and 50-day averages, a double support layer, so caution must remain.  Stochastics are showing bonds to be somewhat oversold, which is good news as well. 

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