Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on June 27, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +31bp

Mortgage bonds started off the day much as I expected, climbing initially after the release of the PCE data, but falling back to level rather quickly as traders digested the information.  So, they remained in a confused state until the U of M Consumer Sentiment report was released.

The University of Michigan report came in at its lowest level since 1980 (remember how things were back then?).  That sparked another round of stock sell-offs, which sends money over into bonds, so I am changing my stance for the time being as floating can be beneficial right now.

Where will bonds go in the future?  Time will determine the direction, but looking at things overall, the downward trend has yet to be broken.  Things are looking better, but we still need to use caution.  Stochastics are on middle ground and bonds are hitting the resistance of their 25-day moving average.  If bonds can break free, the trend will be broken.  Next week will now hold the key to the future of rates.

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