Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 8, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -84bp

If you had been floating in hope of better rates after a bounce off the 25-day moving average, rush and lock before a re-price as that hope is now dashed.

Mortgage bonds, as I mentioned would be this morning, are under tremendous pressure after the rate cuts this morning all around the globe.  Emotions continue to control the markets and there appears to be no end in sight for the current trading environment.  When emotions settle and rational thought returns, we can resume a normal trading environment.

Technically speaking, bonds are rushing to test their next support layer at their 200-day moving average.  As I eluded to this morning, if the 25-day MA broke, things would get ugly quickly and they indeed have, dropping even further as I write this.  The momentum may even break the 200-day moving average’s back.

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