Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on October 10, 2008

Locking Stance:  LOCKING    Mortgage Bonds:  -109bp

The DJIA ended the day at 4pm, down 128 points, which was a lot better than the down 700 they were earlier in the day.  Mortgage bonds finished trading at 2pm for the extended weekend, and that may have been a very good thing since the DOW’s final rally was after 2pm and that rally could have driven bonds even lower.

Take a look at this 6-month chart and you can see bonds fell off a cliff and the whole picture is just plain ugly (chart courtesy of MMG)…

Mortgage Bonds Fall Off Cliff Sending Mortgage Rates Skyrocketing

Monday was the only day of favorable trading, then the 281 basis point plunge started, with bonds breaking through floors of support with little or no hesitation.  And you can see the divergence in the stochastics which show there is no end in the short run, except maybe a retracement and that may be minimal.

Fortunately Monday is a holiday, so look for hopefully a new trader attitude come Tuesday, refreshed from the long weekend.  Things look ugly, but a retracement can be expected shortly, allowing at least a brief period of lower Florida mortgage rates before rates push higher to test their July highs.

{ 1 comment… read it below or add one }

Vic Burek October 11, 2008 at 7:30 am

I used to be a fan of mmg, but have found a new site that is far superior. email me, and i can forward you information on this site.

Keep up the good work and i believe lower rates and better days are ahead of us. Just sometimes you need to take a step or two back before you can start moving forward again.

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