Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 17, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -41bp

Mortgage rates will continue their climb as I mentioned yesterday, this time due to better than expected news on the housing front as well as better than expected earnings, such as those from JPMorgan, Coca-Cola, and United Technologies.  Even some airlines are reporting better than expected results, such as American Airlines’ earnings when you dig deeper (reported over a $1 billion loss, but operating loss was less than $300 million – analysts expected over $300 million loss).

Yesterday, bonds closed down 60 basis points.  Today’s data is sending them lower, including lower than expected Initial Jobless Claims.  In the last two days, bonds have dropped just over 100 basis points, and mortgage rates have suffered.  The charts look really ugly right now, and we will certainly look to retest the lows of June 16 in bond prices.  I would even wager they will go down even further.

Mortgage rates look poised to climb for a while, so lock those loans.  You can expect a brief correction period to take place when floating may prove beneficial, which I will inform you of, but don’t take any chances right now because inflationary fears rule the markets.

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