Florida Mortgage Rates – Morning Update

by Florida's #1 Mortgage Planner on June 20, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +19bp

Mortgage bonds are continuing their move higher on the fears of the global financial meltdown.  Correction still or tend reversal?  Way too early to tell and I am still of belief of correction only and the downtrend will continue.

There is no economic data scheduled for release today which means bonds will take direction from stocks, generally moving in the opposite direction as money flows from stocks to bonds (and vice versa).  That means that since stocks are lower, bonds will benefit.

Bonds are punching against a layer of resistance, so their movement higher may be minimized today.  Stochastics still show bonds to be in the lower side of the spectrum (oversold), but they are approaching middle ground.  Bonds are also approaching the downward trend line which will likely slap them back down without any catalyst to push them through.

I am going to favor floating for a while as bonds are higher and showing no signs of finishing the correction.  I will change my stance and provide updates as conditions warrant and sometimes those conditions change very fast so stay tuned.  If I don’t post before the end of the day, have a wonderful weekend.

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