Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 13, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +3bp

Retail Sales was released about 1/2 hour ago and guess what?  That’s right, nothing.  The numbers came in inline with expectations and the market just remains in a lull.  Take out auto and it was slightly below expectations.

Well, I thought this report would have edged bonds higher given the fact expectations were kind of low to begin with, at -0.1% (prior month was 0.3%).  The numbers do show that the “stimulus check effect” is over and we can expect further numbers to remain toward the low side, especially as the motivation to purchase new cars (high oil prices) dwindles.

I would have liked to switch to a floating stance this morning, but with the market not reacting positively to this morning’s news, we have to take a wait and see approach.  I may be able to change stances, at least briefly later, but we may have to wait until tomorrow’s CPI report before we can truly see what bonds are going to do from here.  Right now, odds favor lower prices and higher mortgage rates, especially since there is no move higher today.

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