Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on August 11, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -44bp

If you look at a chart right now, you would think mortgage bonds are down 75bp, but that is due to their monthly rollover, this one being an adjustment of -31bp.  Mortgage backed securities (namely the FNMA 6.0% Coupon Bond) is actually down 44bp today.

In a day absent of data, news headlines ruled the day.  Oil prices plummeting despite an escalation of conflict between Russia and Georgia.  Stocks were up on the day and money flowed away from mortgage bonds to help stocks get a boost.  The dollar continued to hold its recent gains as well.

Bonds were able to muster some strength and finish off their lows, but a bit of a head and shoulders pattern has presented itself.  Typically, this is a bearish sign, meaning lower mortgage bonds prices ahead, resulting in higher mortgage rates.  We will have to see how this plays out as data starts rolling in, especially after Wednesday and Thursday’s data.

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