Should I float? Should I lock? - Daily Update for Thursday, May 15, 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.

More "good" news this morning. Jobless Claims are reporting an increase and a regional manufacturing index came in lower than expected. Capacity Utilization and Production were both lower than expected. Lastly, the Philadelphia Fed Index came in better than expected - yet, still in negative territory . Overall, this points to continued weakness in the economy without the overall threat of inflation.

Technically speaking - the FNMA 5.5% 30 year bond has started the slow turn back into better territory. Since the major floor that had been holding in recent weeks has turned into a level of resistance - be aware that it will take major news to break through said level.

Therefore, the best bet is to take advantage of incoming gains and

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