Should I float? Should I lock? - Daily Update for Tuesday, May 13, 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.

Retail sales came in exactly on target. Unfortunately, sales minus the ever fluctuating auto industry came in better than expected. This will give encouragement to the stock market and feed a sell off of bonds - translating to an increase in rates today.

Technically speaking - the FNMA 5.5% 30 year bond fell below a major level of support this morning on the news of retail sales.

Since this level of support has been breached, 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