Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on July 22, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -50bp

Just as I expected when I sent out my special report this morning, bonds were not going to get that correction going today and are now down 50bp on the day, down another 31bp from my special report, and continue their "greased brick" fall.

Interestingly enough, oil is dropping yet inflationary fears remain.  Why?  Very simple, the Fed talks about its concerns regarding inflation and, almost in the same breath, talks about the bailout of the two FMs, a move that will surely devalue the dollar further and increase inflationary risks.  makes sense, right?

For mortgage rates, that spells more turbulent skies ahead.  The charts look very ugly right now, except for the fact bonds show as oversold per stochastics, so a correction will need to take place.  Retracements generally take patterns themselves, so this drastic move lower may present a good "floating" opportunity down the road.

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