Should I float? Should I lock? - Daily Update for Wednesday, May 7, 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.

One more day till scheduled economic news comes out - Jobless Claims.  We are still in a mode where bonds are taking directions from stocks and other rumors coming out (FNMA not doing well, oil going up resulting in higher inflation therefore bonds are going to take a hit and rates get worse, etc).  Until that time as actual news is release - hang on tight!

Technically speaking - the FNMA 5.5% 30 year bond is caught in a very tight trading range.  This is actually good because rates aren't really changing much. 

Until the current range is broken, then the best bet is 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