Florida Mortgage Rates – Morning Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  -19bp

As you probably have figured out, it does not take much to turn a good looking chart into a bad one in today’s environment.  With the failure of the 25-day moving average, we are now looking at another testing of the 200-day moving average in all likelihood.

This morning, we saw Initial Jobless Claims basically in line with expectations, up slightly compared to last week.  While certainly not indicative of a stabilizing job market, it is a baby step in the right direction and time will tell if the baby trips or not.  There is still a long way to go before things can be declared as “improving”.

Gap announced what we have been seeing elsewhere, retailers falling behind in sales expectations in September and that is creating concerns about this holiday season’s results.  Was it really a surprise though? 

The 3-month LIBOR is now running around 4.75%, up from 2.82% in just the last month.  Certainly not good news if your ARM is based on this index.  For those of you with HELOCs (the fortunate few) and credit cards, you should see a drop of 0.50% in your rate soon if your bank has your rate tied to the Prime Rate.

On the technical side of things, the good news is the 200-day moving average is tough to break, as was evident yesterday.  That means that, while it may get retested today, it will probably hold.  All that could change if stock traders get over their PMSing and start to drive the DJIA back up.

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