Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 11, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +34bp

Mortgage bonds ended the day up 12bp, but more importantly, they managed to break through their 200-day moving average.  While that may not be a big break, today’s gains are very promising in the "bigger picture".

The markets are getting out of hand to say the least.  Stocks are not getting any breaks, with oil climbing again, Middle East tensions, etc.  No one seems to be looking at the economic data anymore, instead focusing on the headlines and they are again looking bleak, which is good for bonds.

Technically, bonds are looking very good once again, as they have broken the long term downtrend (as long as they can hold out).  That changes the picture of where the future of interest rates are headed, and mortgage rates should have a "lower" future at this point.  The only technical indicator not favoring bonds right now is stochastics as they show bonds in an overbought condition, but the charts are looking very nice.

Time is the only true determinant of where mortgage rates head from here, but all indications are favoring lower rates right now.

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