Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 2, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +19bp

The Senate approved their version of the bailout bill and now it goes back to the House for a vote, so news will probably overshadow data again today. 

Speaking of data, the only bit of data released today is the Initial Jobless Claims, which came in higher than expected, which I forecast back on Monday.  All eyes will be on tomorrow’s plethora of data surrounding the jobs front.

Looking at the charts, it is becoming more apparent that the 25-day moving average is acting as resistance and is keeping mortgage backed securities below that level.  If bonds will be unable to break back above it today or tomorrow, especially on favorable data, the future will look bleak.

As for today, I am going to hold the locking stance until I can see bonds break back above their 25-day moving average.  They have already jumped up to it and fallen back, so they may not have the strength needed.  Tomorrow’s the big day and will set the future of mortgage rates as I have mentioned virtually all week.

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