Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 3, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +9bp

The Jobs Jamboree was released this morning and the Nonfarm Payrolls missed slightly (-62K vs -60K).  Unemployment remained at 5.5%, slightly higher than expected.  Hourly Earnings and Average Work Week were right on target, while the Initial Jobless Claims were slightly higher than expected.  Still to come is the ISM Services Index at 10:00 ET.

Bonds have had an up and down day already and rest only slightly higher overall.  Of concern is the fact that the ECB did raise rates 1/4 percent as expected, something our own Federal Reserve (Bernanke and buddies) should have done at their last meeting.  The ECB’s move will help reduce demand for bonds overall and so bonds will struggle to make any serious gains in all likelihood.

Bonds remain hovering around their 25-day moving average, so despite the "big news", the future direction of bonds is still a cloudy picture.  I am going to hold the locking stance for now, awaiting clearer direction.

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