Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 22, 2008

Locking Stance:  LOCKING     mortgage Bonds:  -22bp

Mortgage bonds are doing exactly what I mentioned yesterday, putting the 50-day moving average to the test to see if it can become support.  Currently, they are at their lows and below that 50-day MA level but a few basis points.

Stock futures point to a higher open and Bernanke is set to speak today, so despite no data scheduled, we can still expect mortgage bonds to make some moves today, possibly even retesting their 25-day moving average.  Lehman reported some good news and that seems to be a prime catalyst for stocks as traders begin to feel the worst is behind us.

Stochastics still show a negative crossover and that mortgage bonds remain in an overbought condition.  The charts show we remain in a long term downtrend as well, so unless bonds can muster strength from Bernanke, they will likely be down for the count today.

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