Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 9, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

There is no data to be released today that affects mortgage bonds much, so headlines and stocks are in the drivers seat, as well as technicals.  So far, headlines are favorable to mortgage backed securities as concerns about jobs are among them.

Stocks look poised to open higher and that could pressure bonds.  As happens when large moves occur from time to time, stochastics actually change their picture.  Mortgage bonds remain overbought, but not as much so after the pullback. 

With all of the other factors involved, the only issue with bonds’ ability to advance further is some overhead resistance, prices that we have not seen for a very long time, basically since January, then back to 2005 or so.  With bonds advancing this morning, they may gain some more ground above this resistance layer.  If they fail, be ready to lock.

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