Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on September 12, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -47bp

Mortgage bonds dropped despite the favorable news this morning.  News of JPMorgan Chase possibly taking over WaMu hit the airwaves this afternoon, likely hitting an alarm that sent bonds lower.  Washington Mutual is another lender that has been plagued by write-offs and other problems.

Mortgage backed securities did manage to hold above their support level, even after falling below it for a while.  That is good news, but there are warning signs still in the charts.

Stochastics have always shown bonds to be overbought, though they have backed off a little.  There is a negative crossover that has occurred and that could spell more of a correction ahead.  The overall trend still points higher, but at least a short term jump in mortgage rates may be in the works. 

As always, look for my Mortgage Market Update Monday, this one will be from Santiago, Chile.  I will recap the week’s news and provide a bit of forecasting for next week.  I will also resume mortgage rate reports on Monday right here.  Until then, have a great weekend!!

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