Should I float? Should I lock? - Daily Update for Tuesday, February 26, 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.

3 reports were released this morning. Consumer confidence was down (good), Producer Price Index was up(bad), Core Producer Price Index was higher than expected (bad). That last one, core PPI, shows inflation rearing its ugly head.

Technically speaking - the FNMA 5.5% 30 year bond bounced a couple times off the 200 day moving average yesterday. Though this is good in some respects, this level needs to hold for rates to improve.

One should continue to

Lock .

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