Florida Mortgage Market – Morning Update

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

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  -31bp

Mortgage bonds have headed lower since the open, though we are still awaiting the release of the ISM Index at 10 ET.  We are hesitant to change our locking stance until we see the reaction to this report for a couple of reasons.

The first reason for delaying a change in stance is that mortgage pricing this morning factored in the decline already, so delaying will not cause any harm at this time.  If bonds plunge quickly, rest assured we will post a change in stance as fast as we can.

The other reason for the lack of change in our stance is that the ISM Index could send bonds higher as recessionary fears grab hold again.  If you read the forecast and week in review posts, you know why we would like to hold out a bit longer as technical indicators are looking favorable at the moment, except that now bonds are below the 50-day MA.  If bonds get back above that level, we are in good shape.  Failure to do so, we will likely change our stance until they push higher again.

Check back regularly for more updates.

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