Should I float? Should I lock? - Daily Update for Wednesday, February 20, 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 Price Index was released this morning showing number higher than expected overall. This combined with slightly better than expected housing starts and building permits has caused another downturn in bond prices.

Technically speaking - the FNMA 5.5% 30 year bond plummeted through the 100 day moving average yesterday and has at the moment broken through the 200 day moving average. If support cannot be found here, expect rates to lose even more ground.

In case you have not followed the advice thus far - today would be an excellent day to hunker down and

Lock.

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