Florida Mortgage Market – Morning Update

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

Locking Stance:  LOCKING     Mortgage Bonds:  -62bp

Bonds had the rug pulled out from underneath them this morning, sending them plummeting back below their 100-day moving average, keeping it as the resistance layer for now.

As we have said before, the bond chart does not look pretty for bonds, but anything can happen.  Unfortunately, even today’s dismal Retail Sales data can’t give bonds any strength compared to the other news of the day.

The dollar continues to reach new lows, this time breaking below 100 Yen for the first time since 1995.  Adding more fuel to the problems facing mortgages, Carlyle Capital failed to reach an agreement with lenders regarding its own margin call, placing it on the edge of bankruptcy. 

Stock futures are showing stocks to plunge as well today and for good reason.  There is just nothing good in the news today to help either market.  Technically speaking, as bonds falter, the downtrend will be solidly in place.  With CPI expected to show increased inflation, the arch enemy of bonds, we could see a major move lower like we saw last week.

Leave a Comment

Previous post:

Next post: