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.
Though bonds will be taking their lead from stocks this morning, the report that could have an impact will be released later today - the minutes from the Fed's last meeting. Stock and Bond traders alike will be looking to see what was discussed and what the Fed will be likely to do the next time they meet.
Technically speaking - the FNMA 5.5% 30 year bond bounced nicely off a key support level yesterday. Depending on what happens throughout the day, a test of the 2 1/2 year mark could occur in the next couple days.
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.
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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No doubt!! Why play the game with rates so low?? Lock and load.
Yes I would definitely advise all my clients to lock their rates. Who knows what can happen. Thanks.
Nice entry - love the information...
I just noticed you do a daily update. That is great.... Thanks for doing that. I sure is a great way to keep people aware on a daily basis. Good job. Lu
Matthew,
I always enjoy your posts. I may have asked before but what do "you " see long term for rates? 6 months? 12 months?
Depending on how quickly the economy recovers or stays where it is, I see rates pretty much staying where they are (within 1/2% either way) for the next 6 - 12 months.
Thanks Matthew,
That is my opinion as well!