Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on May 13, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -25bp

Watch out, bonds have had their wings clipped.  Retail Sales beat expectations at the core level, so recession fears have subsided, and that means inflation is again winning the battle, bad news for bonds.

The squeeze play has apparently wrung out the life for bonds and they are now below all of their moving averages, except their 200-day MA.  Bernanke is already speaking this morning, still saying h will keep pumping “liquidity” into the markets via the TAF or anything else he deems worthy.

There may be some hope still.  Tomorrow reveals the latest CPI data, and a tame read on inflation cold get bonds back on their feet.  However, I highly doubt it, as the government has done a good job so far to fuel inflation, and nothing to stop it.

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