Should I float? Should I lock? - Daily Update for Friday, March 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 Price Index came in below expectations this morning. While for the short term this is awesome news, it definitely signals that the Fed is on the right track for cutting rates again next week. Normally I would say, you go Bernanke, but the trend has been that when the Fed lowers the target rate mortgage rates go up.

Technically speaking - the FNMA 5.5% 30 year bond has broken back through the 10 day, 25 day and 100 day moving average. Unless rates are also able to break through the 50 day moving average, this could be a very short rally.

Until that 50 day moving average resistance level can be broken my recommendation is to

Lock your interest rate.

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