Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on August 14, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +25bp

As we wrapped up the day, mortgage bonds ended at their highs, so there is some hope for gains tomorrow.  A lot happened throughout the day and the result was both stocks and bonds rallying a little.

First, just as the charts predicted, bad news on the inflation front.  Then bad news on the job front.  Then strengthening dollar leading to lower oil prices and expectations that the Fed will start raising rates finally.  Then Minneapolis Fed President Stern spoke up to say the economy resembled the early 1990s, meaning higher unemployment, weak recovery, and lower inflation if energy prices stabilize.

After all the news got digested, the lackluster economy won the battle today, but only by a narrow margin and due mostly to the CPI data being somewhat priced into the markets already.  Tomorrow will see some more economic data flow, so the question will be whether or not bonds can gain some more ground.  While the big picture remains negative, there may be some gains to be had tomorrow, so I am going to hold the CF stance.

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