Should I float? Should I lock? - Daily Update for Wednesday, April 9, 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.

Big news of yesterday was the release of the minutes from the last Fed meeting. A serious pessimism appears to be occurring amongst the Fed members that the economy could be in a continued downturn for the remainder of the year. Currently the pundit's consensus is another 1/4 point rate cut at the Fed's next meeting on April 30. With no other news being released until tomorrow (jobless claims), bonds appear to be taking direction from stocks.

Technically speaking - the FNMA 5.5% 30 year bond fell yesterday to the 10 day moving average. This morning it has appeared to bounce back above yesterday's key support level.

As always, things depend on your personal style. Pundits will be recommending to float though for me until we break above the current 2 1/2 year ceiling I am recommending 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

Posted Wednesday Apr 09

(04/09/08 08:39AM) — Lu Kalaj

thanks for the advise. Its always good to hear the details behind the advise, and you put it very well. Thanks again for sharing your expertise. Lu

(04/09/08 08:46AM) — Matthew Rosov, Certified Mortgage Planning Specialist

Lu - Your welcome. (btw - I can do loans in Michigan)

(04/09/08 09:31AM) — Tony Fantis, Realtor , ABR, Associate Broker - Salt Lake City

I agree, but you won't like my spin on the situation. Lock it, and if it goes down, go somewhere else to get the new rate. Pay the fees to the lender and get a better loan! =)

(04/09/08 10:12AM) — David Conaway

Tony, that's great advice. I guess the buyer should do the same with agents? Find a place and then negotiate with an agent that can provide a lower commission that can be applied back to the buyer. It's not about service now is it. Anyone can do a loan in this market, right? Well done!

(04/09/08 10:18AM) — Matthew Rosov, Certified Mortgage Planning Specialist

David - thank-you

Tony - if you truly suggest this to your people then David's response is dead on!

Matthew Rosov, Certified Mortgage Planning Specialist
Envision Lending Group

Matthew Rosov, Certified Mortgage Planning Specialist: Loan Officer in Laurel, MD

(301) 536-2875

Education in the Mortgage Planning process help folk understand how to turn their "biggest debt" into their greatest asset! Have me show you how to accomplish this.