Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on August 12, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +19bp

Mortgage bonds just can’t seem to make up their minds today, hovering around this level with ticks higher and lower in the meantime.  No real direction as I mentioned earlier, despite Fedspeak.

Minneapolis Fed President Gary Stern in an interview on CNBC said the recent drop in energy prices, namely oil, has reduced his concerns over inflation.  Bonds ticked higher on that news, but rescinded their gains.  Oil continues to drop, a good sign for inflationary concerns, but oil is only part of the overall inflation equation.

Stocks are down and money is flowing into bonds at the moment, a move that is to be expected as traders cover positions and take their profits.  Once again, I expect this rally to be rather short lived and may even be over with already.

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