Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 8, 2008

Locking Stance:  LOCKING     Mortgage Bonds:-41bp

Mortgage bonds were down considerably, and only up slightly during their day of trading in a spread that covered a whopping 163bp.  During the day, mortgage backed securities plowed through their 25-day moving average and even broke below their 200-day moving average, before settling finally between the two.

Things are no longer looking fundamentally sound for mortgage bonds, though nothing in this environment is acting based on fundamentals alone, rather they are acting on emotions more than anything else.  We will have to wait and see if bonds can climb back above their 25-day moving average as they have managed in recent history.

Most of today’s actions were based on news this morning of the global cooperative effort to save the financial markets via rate cuts.  Other news hit the airwaves as well, with even more rate cuts possible, along with pending sales jumping higher and retailers missing expectations.

On a day when stocks were down, mortgage bonds are typically higher and today was another in a series of abnormalities in trading, with the DJIA down 6 straight days not doing much better.  In the end, the picture for mortgage rates does not look good right now.

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