Should I Float? Should I Lock? - Daily Update for Monday, August 3, 2009

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 manufacturing index came in just a bit below the expansion/contraction line - better than analyst expectations and certainly better than last month. This coupled with a nice rally in the stock market is resulting in a worsening of the bond market bringing it back down to the 200 day moving average.

Technically speaking - the FNMA 4.5% 30 year bond is falling back to the 200 day moving average. It is currently approaching overbought status.

I am recommending to

LOCK your best mortgage rate.

To learn why one should Float or Lock -

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

To obtain rates and fees with a $500 guarantee - come visit