Today March 9, 2009 mortgage bonds are attempting to hold above both the 25-day Moving Average and Falling Trendline. These resistance levels have prevented prices from making any meaningful gains for the past two months, so holding ground above these markers is a positive for Bonds. But, the Bond still has some obstacles ahead. The next tough ceiling at the 50-day Moving Average is nearby and a whopping $63B in Treasury auctions could weigh on Bonds this week. Please check FL Mortgage Rates daily.

Stock markets are lower again today and are trading at levels not seen since the mid-1990s, when Alan Greenspan made his famous “irrational exuberance” quote. Since inauguration day, the Dow Jones has fallen over 20%, marking the fastest drop under a newly elected President in over 90 years. A big part of the problem the markets are having is that there is no clear plan as to how we are going to get the economy back on track and how we are going to get lending moving again. Warren Buffet isn’t bolstering any confidence in the markets this morning, saying that the US economy has fallen off a cliff. What was good to hear from this legendary investor, is his comments on mark-to-market, where he said it is “gasoline on the fire”. On March 12th, there is a Congressional hearing on mark-to-market. The Securities Exchange Commission (SEC) Chief Accountant and the Chairman of the Financial Accounting Standard’s Board (FASB) will be testifying. Let’s hope the government can do something to get it right and come up with solution that would get the credit system flowing again. With rates at these levels we suggest Florida Refinancing.

We have started the morning strong today, florida mortgage rates and mortgage bonds are trading higher, as stocks remain under selling pressure. Yesterday, the Dow fell to a six year low, below a level it had first surpassed back in 1997. Wow – not accounting for dividends, the Dow is at a level equal to what it was twelve years ago. You’d have to go back to 2002 for the lowest intraday level on the Dow of 7197 to find a potential floor of support. We’ll be watching this level closely, as it’s very possible to be tested today. If Stock prices bounce higher off this level of support, it could ignite a overdue rally. However, that would be problematic for Bond prices, as dollars will flow into Stocks to chase the rally.

The strong ceiling of resistance overhead continues to keep a lid on Bond pricing gains. Even weak Stocks haven’t helped Bond prices break above resistance. This doesn’t mean that prices can’t improve down the road, but it still may be prudent to lock mortgage rate transactions and protect any modest gains, especially with the aforementioned dynamic in Stocks.