Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on December 2, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds: -28bp

This morning’s report comes a little later than normal as I wanted to see what mortgage backed securities would due after the opening of the stock market.  With the absence of data today, news and stocks, along with technicals will decide the outcome of the day and stock futures were looking at a rebound this morning.

Stocks are rebounding, but only slightly so far, and bonds have fallen this morning, which is to be expected as I mentioned yesterday.  Those of you whom are approaching a closing date this week should have locked already per my instructions.  MBS are off their lows at the moment, but are still held down by the mid-September’s high’s resistance level. 

Mortgage backed securities will need something to get them through this resistance, and that may very well be the upcoming jobs data, which we will see a typically inaccurate preview of tomorrow morning in the ADP Employment Report.  Traders sometimes react to the ADP dramatically, so we may see a lot of volatility hit the markets tomorrow as well.

The outlook for today is that bonds will likely remain down on the day unless something major hits the airwaves.  They still need a pullback before kicking another leg higher according to stochastic indications.  As I said above, according to the charts we are hitting strong resistance and will need something to break the ceiling like we did last week with the Fed announcement.  I believe we are looking at the best opportunity for bonds to break to new highs, but that opportunity could pass us by as well.  So, long term float for now, but be ready to lock if things do go south.

Leave a Comment

Previous post:

Next post: