Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 25, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -22bp

Mortgage bonds dropped like a rock yesterday, but they were attached to a bungee chord apparently.  After free falling well below their 50-day moving average, the sprung back and closed just 8 basis points below it.

However, as inflation seems to be gripping the world (though our Fed seems to be the only one cutting rates), bonds are again dropping.  The good news is they still have a ways to go before they hit support, which means that support should hold.  Which support is that?  Their 200-day moving average.  If that one fails, the sky’s the limit on interest rates, almost.

{ 2 comments… read them below or add one }

jim April 28, 2008 at 10:35 am

In this market as always its important to stay on top of your loans, by that I mean don’t take it for granted that the rate available today will be there tommorow or even this afternoon. If the rate is where you want it or if it works then by all means lock it. This will avoid a lot of heartache because you were waiting for the rate to go down another 1/8th.I feel one mistake being made quite often is not taking advantage of the mortgage brokers experience in the field. Ask what the brokers opinion of the best solution to the refi question. You are under no obligation to take it, but to not use this experience is foolish.

Robert D. Ashby April 29, 2008 at 10:17 am

Jim – Thanks for taking the time to provide your viewpoint. As you are aware, pricing changes daily, if not several times per day, and while it may not change the rate itself, it can saves hundreds, even thousands by floating when the markets are favoring that option.

For all readers…The mortgage broker’s experience is paramount, as many do not understand the markets, and you need to lock if you do not trust your mortgage professional.

As for the best solution to refinance question, do not get caught up in that trap. It is dependent on a wide range of variables, so a “canned” answer is irrelevent. Experience is only partly helpful here in that expertise and level of knowledge outweigh experience.

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