Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on May 21, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -22bp

I am going to hold a floating stance, throwing caution back into the mix as today is seeing bonds under loads of pressure from inflationary news, namely yet another record high for oil.

The good news is that bonds are above their moving averages and may well hold above them, even with today’s news.  Along with the oil prices, the Fed comes into play today, and they will likely keep bonds in a good position with news signifying that the rate cut cycle is over.

If bonds do fall below their moving averages, I will change my stance to a locking one, but I just don’t see bonds doing that unless the Fed reveals the potential to do something stupid (not out of the question and is the reason I am cautious).

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