Should I float? Should I lock? - Daily Update for Friday, April 4, 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.

Well - here's an interesting tidbit of information. Remember that ADP report from Wednesday? According to government statistics, ADP is perhaps not the best source of information. Government pencil pushers - or perhaps it's the software - says the American economy actually lost 80,000 non farm payrolls. Also, the unemployment numbers ticked up by .1% to 5.1%

Definite signs of an economic slowdown if not the dreaded R word.

Technically speaking - the FNMA 5.5% 30 year bond appropriately rose on the news but hit a level resistance and bounced back. Depending on how the stock market reacts will see how the day goes. Even if the bond can break this resistance level, the really big one is 50 bps above.

As always, things depend on your personal style. Pundits will be recommending to float though for me until we break above the current 2 1/2 year ceiling I am recommending to

Lock your interest rate.

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