Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 24, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -25bp

Mortgage bonds ended the day down 34 basis points yesterday, so we hope you took our advice and locked.  Bonds were beaten back down after touching their 25-day moving average and, as I said earlier, technicals would run the week’s direction for the most part.

Today is a little different.  How so?  We saw some data, though not major players, that can move the markets, namely the Initial Jobless Claims report.  This morning’s numbers were below expectations, coming in at 342K versus 375K.  Most people eye the mark of a recession at 350K, so it lets inflationary fears overcome recessionary fears, at least a bit.

Bonds had managed to stay above their 100-day moving average yesterday, but now they are retesting their 50-day moving average.  If this important support layer doesn’t hold up, a downtrend will be solidly in place and rates will be moving higher.

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