Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 6, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +56bp

What a wild ride for the markets, though traders will get more incentives from the Treasury and the Federal Reserve.  The global meltdown is the only thing that is saving us all right now.

At one point the DJIA was down over 800 points and mortgage bonds moved very little.  Nevertheless, when stocks rebounded to end the day down only 365 points, bonds held their ground still and ended the day at +56bp, but were off their highs.

Bank of America also hit the news this afternoon as they announced they were cutting their dividend, but markets did little in reaction to that news as there was plenty more to devour.

Technically speaking, bonds broke through another layer of resistance, and may even push to test their highs of about a month ago.  We will have to wait and see what emotions traders bring to the table tomorrow to see if bonds can hold on, gain ground, or will they fall back to at least test that resistance to see if it truly becomes support.

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