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

Balance of Trade for last month was slightly lower. Yesterday, two European banks left interest rates unchanged as a fight against inflation. This helped bonds here in the U.S. tick up a few notches. The new record prices of oil and further problems in the insurance industry have not been helping bonds this morning.

Technically speaking - the FNMA 5.5% 30 year bond has risen in recent days over all key moving averages. Though a good level of support is beneath bonds, they appear to have a very tough resistance level immediately above - the 2.5- 3 year mark.

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