Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on September 4, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +38bp

Mortgage bonds had a great day, well, because stocks didn’t.  With the DJIA down nearly 350 points today, is it any wonder bonds were up even with the data we had delivered to us?

For more on the data released, please read the previous reports for today.  Looking ahead, we see what can be described as a rubber band being stretched, nearing its breaking point.  When that rubber band gets released, it snaps back (painfully to some), and that may be exactly what bonds are setting up to do.

Tomorrow is the big day, with the release of all the jobs data.  How bonds will react is still in question, but remember that the “stochastic rubber band” is getting really tense now.  Also, the ADP report was indicative of a better than expected jobs report and that would be bad for bonds. 

But, bonds did manage to break through their 200-day moving average, even getting just above their next resistance layer, the prices of early June, so there is good momentum still. 

Where will they go tomorrow, let’s just wait and see.  The fireworks start at 8:30am!!!

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