Florida Mortgage Market – Week in Review

by Florida's #1 Mortgage Planner on April 28, 2008

Mortgage backed securities started the week off well, but their 25-day moving average proved too strong to break, and down they went, again.  As I stated last week, there was not much data being released, so technical indicators and news, such as earnings, fueled the moves in the markets.  Mortgage rates ticked only slightly higher.

The turn lower began on Wednesday and was further supported on Thursday, with a brief moment of relief on Friday.  Data on home sales was basically in line with expectations, though new homes were actually a little worse.  Inflationary fears have once again begun to entrench themselves in the markets, and Thursday’s Initial Jobless Claims didn’t help bonds.  This time, the inflation news has come from all around the world.

With the dollar hitting new lows, oil and various other commodities hitting new highs, there is little question as to whether inflation is taking place or not.  Rest assured that the Fed’s decision on the 30th will play a big role in where each goes in the future, my bet is inflation climbs and the dollar continues its downward spiral on the heels of yet another rate cut, probably .25% this time, though I hope for an increase of the same amount.

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