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.
One more day till scheduled economic news comes out - Jobless Claims. We are still in a mode where bonds are taking directions from stocks and other rumors coming out (FNMA not doing well, oil going up resulting in higher inflation therefore bonds are going to take a hit and rates get worse, etc). Until that time as actual news is release - hang on tight!
Technically speaking - the FNMA 5.5% 30 year bond is caught in a very tight trading range. This is actually good because rates aren't really changing much.
Until the current range is broken, then the best bet is 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
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Should I float? Should I lock? - Daily Update for Friday, August 15, 2008
Should I float? Should I lock? - Daily Update for Thursday, August 14, 2008
Should I float? Should I lock? - Daily Update for Wednesday, August 13, 2008
Should I float? Should I lock? - Daily Update for Tuesday, August 12, 2008
Should I float? Should I lock? - Daily Update for Monday, August 11, 2008
Should I float? Should I lock? - Daily Update for Friday, August 8, 2008
Should I float? Should I lock? - Daily Update for Thursday, August 7, 2008
Should I float? Should I lock? - Daily Update for Wednesday, August 6, 2008
Should I float? Should I lock? - Daily Update for Tuesday, August 5, 2008
Should I float? Should I lock? - Daily Update for Monday, August 4, 2008
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Thanks for the update Matthew. And I would tend to agree with you on the lock.
I think most of my client want to lock, because it gives them a feeling of security.
Rates are low and some companies will allow you to take a lower rate if the rate goes down before you close. I agree. It is time to lock.
Thanks for the comments, all.
Maria - Yes, some companies do allow float downs to occur.
Though this isn't what you meant - one reason to love FHA. Rates get better the customer wins will very little effort!
I couldn't agree more in todays market. If my clients see a rate they like I tell them to LOCK. Although rates aren't all over the place from morning til afternoon I believe that when the market starts to go crazy their going to up up and away.
Matthew! The economist I listen to (my dad) thinks rates will go to 8 by this time next year!