Should I float? Should I lock? - Daily Update for Tuesday, March 25, 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.

Stocks rising on shareholders realizing their investment is worth more and demanding more - oh my.  That's what happened yesterday with Bear Stearn's shareholders saying enough is enough.  This "vote of confidence" shored up stocks yesterday and beat down bonds.  The existing home sales coming out yesterday came in higher yesterday indicating that not all the general public believe the media in their gloom and doom reporting.

This morning consumer confidence came in quite a bit lower than expected (hitting 5 year lows).  This is creating a negative impact on stocks and a positive one for bonds. 

Technically speaking - the FNMA 5.5% 30 year bond bounced off of a key level of support yesterday and is continuing to rise this morning.  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