Florida Mortgage Rates – Afternoon Report

by Florida's #1 Mortgage Planner on September 5, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -12bp

Greetings from St. Thomas.  I only have a few minutes, but here is what is going on…THE RUBBER BAND SNAPPED BACK.

In my earlier analogies, I was using the stretching rubber band example and showing that eventually it would have to snap back.  That appears to be happening.

If you look at the charts, we are falling back toward the 200-day moving average, actually bounced just above it, which is good.  However, you just had to know we were going to get a correction since we haven’t had one during the run up which started August 14. This part of the correction is due to stocks receiving their correction.  In simpler words, both sides of the markets have traders taking profits and retracing some of their gains/losses.

The correction in the bond market may or may not be short lived.  I will address that more in the coming Mortgage Market Update over at Lenderama.  For now, lock the loans and take your gains.  Have a great weekend in case I cannot provide an update when passing through Miami later this evening.

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