Should I float? Should I lock? - Daily Update for Friday, May 16, 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.

Building Permits and Housing Start showed an improvement in today's report - initially this send rates rocketing up slightly. The Consumer Sentiment Index came in lower than expected wiping out earlier losses.

Technically speaking - the FNMA 5.5% 30 year bond had a great showing yesterday, moving up beyond the level of resistance I mentioned yesterday. With the consumer sentiment report coming out at 10 AM, we are now back in better territory.

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

Lock your interest rate. (Remember I will be advocating locking until rates break the 3 year ceiling!)

To learn why one should Float or Lock -

Check out Should I float? Should I lock? & Reasons to Float or Lock