Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 4, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

Mortgage bonds are up on the day, currently at their peak, but I am skeptical about their ability to hold above the 200-day moving average today with the way the news played out this morning.  I am holding the cautiously floating stance, but chances are there will be a pullback soon so be ready.

The ADP report came out this morning and its forecast for tomorrow’s payroll data is that it will beat expectations, which would be bad for bonds.  The only good news is that the ADP report has been way off before.  That being said, with the charts showing a need for a correction, combined with them hitting very strong resistance, any “good news” about the economy will likely make that correction happen.

Initial Jobless Claims were higher than expected which will help bonds hold their ground, maybe even gain a bit more.  With productivity increases for Q2, that will also likely help bonds.  We are also awaiting crude inventories which, like the ADP, was slid one day due to the holiday.  The ISM Services Index is also due out in a few more minutes.

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