Should I float? Should I lock? - Daily Update for Wednesday, April 9, 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.

Big news of yesterday was the release of the minutes from the last Fed meeting.  A serious pessimism appears to be occurring amongst the Fed members that the economy could be in a continued downturn for the remainder of the year.  Currently the pundit's consensus is another 1/4 point rate cut at the Fed's next meeting on April 30.  With no other news being released until tomorrow (jobless claims), bonds appear to be taking direction from stocks.

Technically speaking - the FNMA 5.5% 30 year bond fell yesterday to the 10 day moving average.  This morning it has appeared to bounce back above yesterday's key support level. 

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