Florida Mortgage Rates – Evening Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  -25bp

Mortgage bonds again came crashing down, this time after the Fed’s decision.  Despite the Fed’s talk that inflation may moderate later in the year (where did they pull that from?), bonds lost ground as money flowed into stocks.

The Dow closed up over 300 points on the heels of the Fed decision and the fact oil prices are dropping again.  Add to that the fact that the Fed showed what I have felt for a long time, that they are more interested in economic growth than doing their job of fighting inflation.

Looking at the charts, things are just getting ugly again.  There is plenty of room for bonds to drop before hitting support.  Stochastic indications are another negative crossover and pointing towards lower prices ahead.  With things just not looking good anywhere for bonds, “locking” goes without question.

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