Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on May 7, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +9bp

Mortgage bonds are still trapped in a “squeeze play” which will have to be broken soon and tomorrow’s Initial Jobless Claims may be the back breaker.

Bonds received some favorable news from the Fed, as Fed President Hoenig talked about inflationary fears and the need for the Fed to stop cutting rates.  While the fears of inflation are bad, the talk about not cutting rates more is favorable as it means the Fed is finally going to get off their butts and fight inflation, which they should have been doing a long time ago.

However, recessionary pressures still loom and tomorrow’s jobs data could play a much greater role in the direction of the markets since there is little other data available to for traders to make decisions. 

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