Should I float? Should I lock? - Daily Update for Thursday, April 10, 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.

Initial Jobless claims for last week came in lower than expected.  The trade deficit increased by 5% over the last reading - better than expected.  Though both these numbers indicate better readings than analyst expectations, they are still showing a dreary look on the economy.

Technically speaking - the FNMA 5.5% 30 year bond rose above a key support level yesterday.  Though a slight improvement is seen at the moment, indicators show the bond to be overbought - so any negative indication or bettering of stocks could bring things down. 

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