Should I float? Should I lock? - Daily Update for Monday, March 24, 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.

A few news bits out early this week, look for the big news item on Friday with the important Personal Consumption Expenditures.  Early trading on Wall Street is pointing to a big opening.  Therefore look for bonds to tumble.   

Technically speaking - the FNMA 5.5% 30 year bond is still caught in the tight trading range.  It's current level appear to have a strong level of support.  Being able to bounce here would be great news - otherwise it's 65 bps down to the next level of support.  Bonds are also seen to be in an overbought range.

With all this - I would still recommend one to

     Lock your interest rate.

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