Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on November 5, 2008

Locking Stance:  LOCKING   Mortgage Bonds:  +38bp

Mortgage bonds are basically flat since this morning’s report and that leaves caution laying on the table.  The DJIA is off its lows and mortgage backed securities are off their highs.

We did see some more data released today, namely the ISM Services Index, and the results were also favorable.  The ISM Services Index is not a major player in the marketplace, but it did come in below expectations with a 44.0 versus the expected 47.0 and is indicative of the continued slowdown in the economy.  Oil is off considerably today as well, and the dollar is mixed.

Looking at the charts, we see mortgage bonds testing the top of their sideways trading pattern, which appears to be as high as they will go.  We will still need to see bond pricing fall off before we can be certain they will not break their trading pattern, but today’s movement has stalled out and that means a change in stance for protection against a pullback.

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