Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on August 7, 2008

Locking Stance:  CAUTIUSLY FLOATING     Mortgage Bonds:  +44bp

As I mentioned earlier, bonds got a boost from the Treasury auction.  Of course, the struggling stock market helped a little also.  The key part of bonds’ move higher was the level of foreign participation in the auction, 42.9%.

What a difference a half a day makes in the way charts read.  While the long term trend is still favoring lower prices, the near term is now looking at retesting resistance, so at least a mini rally can be expected right now.  If bonds can break through their resistance, we could see a complete trend reversal and lower mortgage rates as a result.  I caution that it is too early to say that with certainty.

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