Should I float? Should I lock? - Daily Update for Thursday, May 8, 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.

Jobless Claims came out this morning slightly lower than expected. Is this a statistical blip or is the economy improving? Productivity increased but hours worked decreased. Finally, labor costs increase but not as much as expected. All of this points to unsure times ahead.

Technically speaking - the FNMA 5.5% 30 year bond is at the bottom of a tight trading range. Depending on how the stock market reacts will better determine the direction of bonds.

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