Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on July 15, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -16bp

Mortgage bonds have had a very interesting day and we are only halfway through it.  Retail Sales came in below expectations, which is good for bonds and they did rally for a while, even reaching their 200-day moving average, before falling back down.

Bernanke is again highlighting growth risks, but their decision to lend to Fannie Mae and Freddie Mac is doing what I talked about in my post, Does Fannie Mae and Freddie Mac’s Insolvency Spell Financial Doomsday?, at the Florida Mortgage Report, which is the dollar is falling as a result.  As the dollar falls, inflation concerns rise as well, so today is looking like another day where stocks and mortgage bonds falter.  The 10-year Treasury Note, however, is up, stressing the importance of following the right charts in real time.

With both Retail Sales and PPI favoring bonds, their inability to break free of the downtrend is very concerning and the reason I remain in a locking stance as the future is not looking good at the moment according to the "big picture."

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