Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on July 2, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -6bp

Mortgage bonds failed to maintain their ground, though they only slipped a few basis points.  The biggest problem is that they remain below their 25-day moving average and within the downtrend.

Tomorrow will be a key day on multiple levels.  The Jobs Jamboree will need to miss expectations as today’s ADP report priced in the current forecasts since the ADP confirmed them.  Adding to the pressure, the European Central Bank (ECB) may raise rates tomorrow (something our Federal Reserve should have done), and that will cause the further deterioration of the dollar and erode demand for mortgage bonds as well.

Overall, things do not look very promising for mortgage rates and so I will keep my locking stance for now.  If the ECB holds rates and the jobs data misses, my stance may change.  I will be in Santiago, Chile again tomorrow morning, so my reports may be delayed a while.

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