Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on May 27, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -19bp

Inflationary fears still grip the markets and with another shortened week, volatility will likely add to the “fun.”  Odds favor bonds dropping to test their 200-day moving average, which is significantly below current pricing levels, so locking is the best option right now.

Today is rather tame on the data side, but global inflation is all over the headlines, driving bonds lower presently.  As inflation controls the markets, that drop to the next support layer is almost inevitable, maybe even today.  Friday holds the next key to where bonds head in the form of the PCE data, the Fed’s favorite for measuring inflation.  This report will either be bonds’ salvation or destruction.

Again, this week’s forecast and last week’s review can be found at Lenderama to free time up for taking care of operations.

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