Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 8, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +25bp

Mortgage bonds were all over the map yesterday, so to speak, with a total range covering 65 basis points, and they ended the day up 9bp.  Today they are extending the gains, breaking through resistance again.

Bonds are now clearly in at least a short term up trend, so floating can prove very beneficial.  Today’s news from Bernanke is what appears to be stoking the markets, mainly the talk about providing more rules to protect buyers from predatory lending practices.  More on Bernanke’s speech will be available later today on Florida Mortgage Report.

Technically speaking, bonds are looking good and should be able to keep this move higher all the way to testing their 200-day moving average.  That level will prove to be the real test of whether they can break the downtrend or not.  Of course, they have to hold onto these gains to complete the picture, which I will report more on as things develop.

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