Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on July 18, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -56bp

Earnings takes the headlines and bonds move as a result.  Remember how I said we look poised to retest the lows of last month?  Well, we are now below that level, even moving below pricing from last October.

The ugly pattern that has formed in the charts is just not getting any prettier.  Merrill reported a $4.65 billion loss.  And to show the madness, Citigroup lost $2.5 billion and the stock is up as a result.  I guess these days, a narrower than expected loss, even that much, is good news.

Once again, a small rally that is "corrective" can be expected soon as bonds are becoming oversold.  beyond that, I think it is safe to say the downtrend is still in place.

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