Florida Mortgage Rates Report – Midday Market Update

by Florida's #1 Mortgage Planner on September 17, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  +15bp

A bucking bronco is tame compared to what is happening in the markets today.  Prices have been running back and forth across that support level I mentioned, spanning a range of 56 basis points.

Besides the data, I mentioned news would control the day and the Fed bailout of AIG (sorry I didn’t mention it earlier) is part of the problem.  I have told many that we need the DJIA to drop below 10,000 to spark a bull market again, and we may just get that soon as the DOW is down nearly 350 points today on the heels of the AIG news.  Part of that is that AIG’s stock was rendered worthless by the Fed. (and they were supposed to save the financial markets?)

Throughout the day we are seeing some wild trading moves with trading ranges spanning more than 15 basis points in merely two minutes.  With that kind of volatility, it is best to just sit on the sidelines and wait.  The other major concern is that with the DJIA down so much, bonds should be making significant gains and they aren’t, at least not yet.

Leave a Comment

Previous post:

Next post: