Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on July 31, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +25bp

Well, bonds didn’t move much at all after this morning’s mortgage rates report.  As I have talked about, bonds have not shown any “real” strength, and with them hanging just slightly above their 25-day moving average and their 50-day moving average just above, they are going to need something good to happen or they will likely resume their downtrend.

The data released today was sending mixed signals to bonds overall, but stocks fell mainly on the GDP data, and bonds jumped up at the start, then they were stopped in their tracks, even though stocks fell hard late in the day.  All eyes are now focused on tomorrow morning’s flood of jobs data, providing some data covering both sides of the equation, though most will focus on the recession or not question.

Technically speaking, stochastics are on middle ground, though slightly into the overbought side.  The 25- and 50-day moving averages are a double ceiling of resistance that bonds will have to break to move higher, which jobs data may provide (or not).  Odds still point to lower prices ahead, that is unless bonds can break free of their downtrend.

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