Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 30, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  0bp

Well, as luck would have it, I missed my flight by about 3 minutes, so I bought another 3 hours in the Big D (Dallas, TX).  The good news is that it allowed me to watch the market react to the Chicago PMI data.

The Chicago PMI’s release this morning beat expectations.  Combine that with oil hitting new heights (thanks to Bernanke and gang), and you would think bonds would be selling like hot cakes, but they remain flat.  Why?

If I were to sum it up into one word, it would be "confusion."  The data lately has been presenting mixed signals, right?  Not really, but on the surface they have.  The battle between recession and inflation is still on but traders remain rather skeptical as to which direction the winning plays are and so they just sit.

We also have a shortened trading week to celebrate independence.  That means volume will be lighter than normal and usually presents more volatility in the markets, yet we remain flat. 

I am going to hold my cautiously floating stance as bonds are delicately balancing on the edge of breaking the downtrend.  If they are successful, floating will prove beneficial.  If not, I will be switching back to a locking stance.

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