Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 22, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

Currently, mortgage bonds are pushing even higher, now slightly above their resistance layer and are very close to setting a new peak in pricing, which we desperately need for lower rates.  Stock futures point to a much lower opening and that appears to be what is the driving force right now.

Boeing, Merck, and Wachovia all reported lower earnings, while Apple jumped 26%.  Oil is also down over $2.50, so that will likely help keep stocks down if it holds.

Looking at the charts, or technicals as I often refer to, we have some good and some bad.  MBS need to keep their climb going, setting a higher peak, to break the potential of a downtrend right now.  With today being the 6th “green” day pattern, there will need to be a pullback, and that will likely occur soon.  With their current pricing just above a resistance layer, that resistance may force the pullback today even.

Mortgage bonds are already off their highs, but the stock market hasn’t opened just yet, so they could rally again at the opening, or they could falter more just as easily.  Today will require a close eye and an “itchy” trigger finger.  How the stock market and oil prices react to the inventory report at 10am may be more pivotal today than typically so.

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