Florida Mortgage Market – Morning Update

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

Locking Stance:  LOCKING     Mortgage Bonds:  -41bp

In my special update yesterday, I mentioned bonds’s floor of support, the all important 200-day moving average, failed.  Bonds to manage to rally back to close at that level, providing a glimmer of hope, even if very, very small.

That glimmer was snuffed this morning as more reports of a better than expected economy relieve those fearing recession, allowing inflationary fears to muster even more strength, and down go bonds.  That brings this week’s movement to over 130bp down, and it is only the beginning of the third day.

What’s worse is that tomorrow will see the PCE data and another potentially deadly look at inflation’s grip.  Any rise here could easily spell disaster, sending bonds into a death spiral. 

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