Should I float? Should I lock? - Daily Update for Wednesday, February 13, 2008

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Big news today.  The retail sales for January came better than expected.  This means that stock traders will be looking to jump back into the market as earnings should start to pick up.  Since most stock traders place their reserves into bonds, the bond market will be suffering today.

Technically speaking - the FNMA 5.5% 30 year bond continues to fall towards the 50 day moving average.  In this current vacuum of information the bond will drift along path of least resistance, which happens to be down.

With this, the recommendation on the short term for interest rates continues to be to

     Lock.

                          Check out Should I float? Should I lock? & Reasons to Float or Lock