Florida Mortgage Rates – Afternoon Report

by Florida's #1 Mortgage Planner on July 9, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +31bp

Yes, I am still holding my locking stance as we are now hitting the 200-day moving average and that will be a tough barrier to break.  Things are looking very good for bonds right now, except for the fact stochastics are showing an overbought condition.

Stocks are having another down day, oil prices rising, and a weakening dollar, along with Middle East tensions.  As I have said before, technicals take a back seat to news and today is one of those days. 

If bonds can muster the strength to break through and hold above their 200-day moving average, we can expect mortgage rates to continue to drop.  However, if they fail to break through, rates will once again rise, at least for the near term.

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