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.

It's official - let confusion reign. Housing starts actually went up last month! The Producer Price Index held steady but the Core PPI (strips away the 'volatile' food and energy numbers) was almost double the expected percentage. This coupled with the expected reduction in the Prime today is going to lead to a swell in the stock market and a loss in the bond market

Technically speaking - the FNMA 5.5% 30 year bond exploded upwards yesterday. The bad news coming from Bear Stearns and the lower of the Fed Funds Rate all contributed to this dash to the safe side of money in bonds. This morning the bond hit the ceiling formed when the Fed last cut rates and has since come down.

Going off of historical data (remember there are always incidents outside the norm in any data set), the bond will more than likely be taking a tumble over the next few days. I would strongly recommend taking advantage of what happened yesterday and

Lock your interest rate.

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