Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 29, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +12bp

Mortgage backed securities had a good day yesterday, ending up over 30bp.  Today, they continue their rise, but I do not feel it is sustainable, as there is no real “substance” to this move.

There are good points to be shown in this move, however.  They have managed to move above their 50-day moving average, barely, and are testing their 100-day moving average. 

The problem is that this week’s data will likely not favor bonds and that is why I am holding the locking stance until I see a valid reason to change.  Tomorrow begins the “big bang” for the week, leaving the only question being…”will bonds implode (lower) or explode (higher)?”

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