Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 17, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -12bp

Hopefully you noticed our alert to lock yesterday and did so.  As the day began, we thought floating may be worthwhile as it appeared that the support would hold.  It didn’t.

Today is already looking lower, so we remain in a locking stance.  If bonds can muster enough strength to get back above their 50- and 100-day moving averages, we may still see the trading range hold, but it appears unlikely.  The only good news right now is that bonds have moved into an oversold condition.

Merrill Lynch put out another round of disappointing earnings, the third straight, and announced more layoffs.  That is generally good news for bonds.  Add to that the disappointing Pfizer numbers and things should be better than they are in the bond pit.  However, IBM beat expectations in their earnings.  Initial Jobless Claims came in around expectations, but are showing a worsening job front.

Overall, bonds should be looking up, not down, and that has us a little worried.  For those of you nearing closing, go ahead and lock.  For those of you who would like to live a little on the edge, keeping in mind that lenders are just beginning to price for the day, floating may prove beneficial, just be ready to lock if things continue lower.

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