Florida Mortgage Rates – Market Recap

by Florida's #1 Mortgage Planner on September 25, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +9bp

As I mentioned earlier, the charts were starting to show signs that we could see bond pricing climbing higher.  The fact they held on today is a testimony to that potential since, despite favorable data, they had to fight stocks for money.  With the DOW up nearly 200 points, any gains are nice.

They remain above their support level and a "doji" pattern formed today, sparking a bit of a positive outlook.  The 25-day moving average continues to climb, closing in on current pricing.  Additionally, we have almost completed a stochastic crossover which would signal buyer strength returning to the markets.

We have to remain cautious moving forward due to the uncertainty of the outcomes of the government’s latest interventions, but from a "visual" point of view, things are finally looking better.

I will be heading to Santiago, Chile tonight, so the morning report will be a little delayed until I can get to the hotel and "plugged in."  I expect to have that report by 9:30 at the latest. 

{ 4 comments… read them below or add one }

Mortgage Jack September 25, 2008 at 11:09 pm

In a surprising press release European bank UBS predicts FED bailout will boost dollar and advises investors to sell euro in favor of dollars and US treasuries. It believes that bailout plan will be supportive to dollar against euro, which is considered to have passed it’s 5-year exchange rate peak. Increased appetite for treasuries is caused by lowest business confidence since 3 years in European (especially German) economy and looming thread of recession spreading to Europe. Well, either they are right, or this news is “probe balloon” to test the market response in attempts to bring down high-flying euro exchange rate. Will treasury bonds be selling like hotcakes?

Ryan Evans September 27, 2008 at 12:01 am

First of all good post! Jack, I strongly feel that treasury bonds will be selling like hotcakes! I do not know how many would agree to it but as far as my point of view goes, it will.

Mortgage Jack September 29, 2008 at 4:38 pm

Well, todays news about voting down bailout plan and flight to safety of t-bonds proves treasuries are selling like hotcakes. Euro, Pound and Yen loosing to the dollar. More pain in Europe will strengthen the dollar and make treasury bonds look even more atractive.

Robert D. Ashby September 30, 2008 at 6:46 pm

This market is filled with emotions rather than fundamental trading patterns. When we see large moves, such as the magnitude of the DJIA fall today, one can expect a retracement to occur regardless of data, strengthening dollar, etc. and we got that today.

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