Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on June 3, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  0bp

Mortgage bonds did manage to move above their 200-day moving average yesterday as stocks took a bit of a beating.  Looking at the technical side, a correction was needed, so the move is not entirely unexpected.  I remain rather curious about how this week will play out, mainly if bonds can remain above this important level. 

Looking at the overall chart pattern, bonds are out of their sideways pattern and appear to be starting a downward trend.  If the 200-day moving average does fail completely, this downtrend will be fully established and rates will be moving higher.  I think that will happen, so I am holding a locking stance for now.

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