Should I float? Should I lock? - Daily Update for Monday, May 12, 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.

With a week filled with all sorts of economic news, bonds will be taking guidance from stocks today.  Oil is up, negative earnings reports are still coming out, and a lethargy still hangs over the economy.

Technically speaking - the FNMA 5.5% 30 year bond fell to a big level of support on Friday.  A combination of news and bond rollover.  Bonds are holding rather steady this morning.

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