Florida Mortgage Rates – Special Report

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

Locking Stance:  LOCKING     Mortgage Bonds:  3bp

We have a battle going on in the markets, with bonds being beat down, rebounding, even retesting their 25-day moving average as I expected yesterday, but being beat down again.  I think this is the first time I have been switched stance back and forth like this, but it is just that type of market.

As I mentioned yesterday, the charts signaled there was going to be at least a retest of the resistance at mortgage bonds’ 25-day moving average, but this morning MBS tanked out of the starting gate on the heels of the Fannie Mae announcement.  Since then, we have seen bonds do exactly what the charts predicted (I will explain this in my upcoming book). 

Bonds are now backing off their highs, which was their 25-day moving average, so it appears locking is the better choice again.  As they day progresses, I will be holding this stance so long as mortgage bonds fail to break their 25-day moving average.  If they do muster the strength to break through, I will certainly be switching stances as the outlook for mortgage rates will be much better.

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