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.
The Fed did it - dropped the target rate .25% to 2.00% and hinting a pause will occur. In other news - Personal Spending, Personal Consumption, and Jobless Claims were all up, while personal income dropped. Though this is all essentially a wash, bonds appear to be reacting favorably to the news.
Technically speaking - the FNMA 5.5% 30 year bond is now above all moving averages. Now we see how it will react to the various ceilings of resistance looming on the horizon. With the bond also neither overbought nor oversold, it could go either way.
Pundits will be recommending to float today, but with the various ceilings of resistance, it would behoove you 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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