Should I float? Should I lock? - Daily Update for Tuesday, April 15, 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.

Producer Price Index was released just a little bit ago.  The overall index jumped by nearly .5% while the core index (excluding food & energy) remained constant.  The NY Manufacturing survey showed a surprise jump as well.  This show increased strength in one corner of the country and a possible increase in inflation.  Both of these while balance out in the market are overall bad for bonds.

Confirmation (or rebuttal) of these numbers won't come out until tomorrow's Consumer Price Index (how much is passed on to consumers).

Technically speaking - the FNMA 5.5% 30 year bond has below some key levels of support.  Depending on how far it goes will depend on how panicky traders get

This is definitely the time to

     Lock your interest rate.

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