Florida Mortgage Rates – Evening Report

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

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +28bp

Greetings from San Juan, PR.  Mortgage backed securities did not move much from my last report, which is what I was suspecting.  They did manage to close ever so slightly above their 25-day moving average (2bp), so if you have not locked already, you may as well wait until tomorrow morning at least.

Indications point toward a dismal job picture and that should spur a drop in Florida mortgage rates.  Then again, the stock market may retrace itself again and bring bonds down despite favorable data, which would send mortgage rates higher.  As I have said virtually all week long, tomorrow’s data and the market reaction will decide the future of Florida mortgage rates.

Even looking at the charts, the picture is rather fuzzy.  Stochastic indications point towards bonds falling with the divergence in the lines.  Price wise, we are resting just above the 25-day moving average and that could let bonds rally off a favorable jobs report.  The bottom line is that bonds need to rally tomorrow or mortgage rates will be heading higher.

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