Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 10, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  -31bp

It looks like another fun day in the markets today as we appear to be in for another slide across the board.  Of course, we can expect that slide to not be straight down, but a myriad of ups and downs, along with sheer drops, so have your barf bags handy and hold on.  Oh, and for those of you wondering what to do with your money, leave it alone as making decisions based on emotions usually leads to the wrong decision and remember you don’t “lose” money until you liquidate your position.

Any data today, as if it really mattered in this environment?  The answer is yes, and that is the Balance of Trade which usually doesn’t move the markets much.  That is due out in a few minutes.

Technically speaking, MBS have dropped below their 200-day moving average and this morning gapped down below even their 50-day moving average.  That means they can now rush down to retest and even break through their next support, if there are any left.  And if you look at the divergence of %K and %D in stochastics, you can see just how ugly things look for mortgage rates right now.

The bottom line is that traders continue to flee all of the markets and we can expect the media to make damn sure everyone knows it, fueling even more fears.  That means we can look forward to higher mortgage rates down the road unless bond buyers can get a grip and start mortgage backed securities climbing higher again.

PS – in the few minutes I took to write this, bonds have fallen to -84bp.  The sheer drop has started.

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