Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 21, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  0bp

The DJIA, after there 444 point loss yesterday, is poised for a rebound today and just as charts tell the story for mortgage backed securities, they do the same for stocks.  I detail that in my upcoming book as well, as a lot of the material in the book can be applied to any stock, sector, even commodities and currencies, not just MBS.  But enough about that.

Stocks will likely rebound somewhat today in an attempt to get back above the 7900 level, which will be very important for the future of stocks, and even mortgage bonds.  The 7900 level has been solid support for stocks recently, and yesterday’s close was well below that at around 7500.  If stocks fail to rally back above 7900, that level will become resistance instead and we may see stocks down for a while to come, which may be a good thing for mortgage rates.

In the absence of data, mortgage bonds generally take their lead from stocks, so today will most likely be a down day, meaning Florida Mortgage rates will move higher.  Friday’s have been extremely volatile lately as traders don’t want to be caught out of position for the weekend, so expect some major “mood swings”, especially late in the day.

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