Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on November 7, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -35bp

Mortgage backed securities closed near the bottom of their trading range and, as I said before, were down on a day when they should have rallied.  Those two things alone are causes for concern, but the charts spell out even more concerns.

Some of the reasons mortgage bonds were down today stem from the fact stocks were higher with the DJIA ending the day up just shy of 250 points.  Nevertheless, all the news and data pointing towards recession should have elevated bond pricing despite the money flow.  The Treasury will be adding a lot of supply next week, so the selling pressures will mount, something I will be discussing in my weekly update at Lenderama.

The charts are getting ugly once again.  I have talked many times this week about the sideways trading pattern and how it is shrinking at the tops.  This move lower marks yet another lower peak and subsequent reduction in the trading range.  That means, in all likelihood, bonds will drop and at least retest their lows of the trading range, and that means mortgage rates will be heading at least a little bit higher.

Have a great weekend and don’t forget to check out my weekly update and the normal daily reports.

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