Florida Mortgage Rates – Evening Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  -53bp

What a day mortgage bonds had as news about Freddie Mac and Fannie Mae hit the airwaves, along with Bernanke’s plan to bail them out.  You can expect Bernanke and Paulson to be working hard to find a way to have the government take them over.

Today’s trading range was a dramatic 100 basis points, with bonds ending just 3bp from the bottom.  It is a perfect day to show how things quickly the picture can change from a very “rosy” picture to a nightmare in the bond pit. 

The day started off with bonds looking very solid and poised to break their downtrend.  Things turned ugly and now, not only does the downtrend remain, but bonds’ future looks bleak with the pattern formed.  All hope is not lost if they can muster some strength and start a rebound before dropping below their previous low, which will keep the mini uptrend intact.

Check out next week’s mortgage market update at Lenderama and I will keep you posted as to how things play out next week.  Have a great weekend.

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