Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 26, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

Mortgage bonds are continuing their move higher, which started ironically after the Fed left rates unchanged yesterday.  Despite the inflationary concerns of the Fed, traders are still buying in.

Why the move higher?  In a nutshell, it is all about the stocks selling off and nothing more, therefore the move is likely unsustainable and just a continued correction.  Tomorrow will be the real test for mortgage bonds this week as we see PCE’s numbers reveal more on the inflation front.

For now, exercise caution, but floating will be a benefit so long as bonds hold on.  I will be unavailable until after the market closes, so keep a watchful eye for market changes and I will bring you a closing update from San Juan, PR when I get there.

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