Should I float? Should I lock? - Daily Update for Wednesday, May 14, 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.

Consumer Prices came in below target expectations today. Both the regular and the core were lower than expected. This rather tame reading on inflation, while normally good for bonds, has caused the stock market to improve markedly causing bonds to lose what little they gained today.

Technically speaking - the FNMA 5.5% 30 year bond which had a major downturn yesterday has since managed to bounce off of the 200 day moving average.

Though bouncing off the 200 day moving average, 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