Florida Mortgage Rates – Afternoon Update

by Florida's #1 Mortgage Planner on June 17, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +50bp

You may be wondering why I am still holding a locking stance with bonds up 50bp today.  Even though I am tired having just arrived from Madrid, I can see that today’s data was not very favorable to bonds, but the managed a rally off the sell off of stocks instead.  Remember I said we needed a correction?

I am sorry I was out for the day and could not report that a short term float was in order due to the rise in prices, but I would have changed back to a locking stance any way by now.  Today’s saw some data on housing and inflation and the numbers just don’t warrant a move higher, so this rally is likely unsustainable.

Producer Price Index (PPI) showed similarly to the CPI data in that overall inflation is climbing out of control, beating expectations by a long shot.  Core PPI was in line with expectations, so the whole “there is no inflation” argument is all over the place.  Rest assured I will be posting an article addressing that line of thinking on the Florida Mortgage Report later today or tomorrow.

Housing numbers were basically in line with expectations and the G.17 release was showing production was down a bit, though nothing major.  Fresh talk about the Fed not raising rates sent stocks lower and bonds rallied.  The fact the Fed is against raising rates should be a major concern, especially in light of the latest CPI and PPI data.  Oh yeah, “there is no inflation”.

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