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.
Oh I feel like such a Scrooge! A really bad Jobs Report this morning which (you guessed it) is AWESOME for bonds. Yet, the unemployment rate fell by 0.2% - lower than analysts expected (not necessarily good news). Hourly earnings and the average work week both held steady.
What does all this mean? A chance for bonds (mortgage rates) to rally back from the brink.
Technically speaking - the FNMA 5.5% 30 year bond sank further below the 200 day moving average yesterday. This morning the bond is coming back towards what could be a major resistance level. If bonds can come back through then rates have a definite chance to improve.
Until the bond actually gets back above those levels, I am going to still recommend that one
Lock your interest rate.
To learn why one should Float or Lock -
Check out Should I float? Should I lock? & Reasons to Float or Lock
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Should I float? Should I lock? - Daily Update for Friday, July 11, 2008
Should I float? Should I lock? - Daily Update for Thursday, July 10, 2008
Should I float? Should I lock? - Daily Update for Wednesday, July 9, 2008
Should I float? Should I lock? - Daily Update for Tuesday, July 8, 2008
Should I float? Should I lock? - Daily Update for Monday, July 7, 2008
Should I float? Should I lock? - Daily Update for Thursday, July 3, 2008
Should I float? Should I lock? - Daily Update for Wednesday, July 2, 2008
Should I float? Should I lock? - Daily Update for Tuesday, July 1, 2008
Should I float? Should I lock? - Daily Update for Monday, June 30, 2008
Should I float? Should I lock? - Daily Update for Friday, June 27, 2008
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Great post... I was writing my post as the jobs number was coming out...
It's a weird market, and not one that seems to want to shake the weirdness anytime soon. Expect the unexpected, and lock loans when it makes the most sense.
I have subscribed to your blog. Good stuff.
I hadn't heard abou the jobs numbers etc. That's why I always try to check your daily posts. Thanks once again!
I have one client who is ready to close on the house, but still holding out on locking because he's waiting for the rates to drop. I hope they do soon.