Florida Mortgage Rates – Midday Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  +16bp

Mortgage bonds are having a slingshot day.  They started off the day driving lower getting down around 25bp before buying sent them higher.  Exactly where bonds will rest remains to be seen.

There is no data to be released today, but Yellen has been yelling this morning.  San Francisco Federal Reserve President Janet Yellen said that things could get worse before they get better.  She then goes on to express her own concerns over inflation, which is of great concern considering she is one of the more dovish members of the Fed.

All in all, bonds got mixed signals from her speech and that was reflected in price movements in the last half hour or so.  They have moved to down 25bp, to up 19bp, and are now returning to flat line.  DO NOT FALL INTO THE TRAP!!!  That trap being the thought that bonds are regaining strength and will recover, which remains to be seen.

Don’t forget to check out this week’s Mortgage Market Update.

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