Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 24, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +12bp

Mortgage bonds finally started showing some strength yesterday causing me to switch my stance.  With oil prices dropping, the dollar strengthening against the euro and other currencies, no surprises in the Beige Book, and some other good news for bonds, they managed to erase their initial losses and end the day up 38bp.

The question moving forward will be whether or not this will just be a needed correction or will we see a change of course altogether.  I suspect it will just be a correction.  Today has only a couple of data releases, the first being the weekly Initial Jobless Claims and the other to be released at 10am ET is Existing Home Sales.

Initial Jobless Claims just came out and were higher than expected, coming in at 406K versus expectations of 372K.  Good news for bonds and floating should turn out to be a wise decision for now.

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