Should I float? Should I lock? - Daily Update for Monday, May 19, 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.

Little news will be coming out today which could significantly impact stock and bond markets. Friday saw a significant gain for bonds until the end of the day when it all petered out. In preparation for the Producer Price Index, bonds appear to be holding just above a major support level.

Technically speaking - the FNMA 5.5% 30 year bond is currently holding just over the major support mark previously mentioned - a conglomeration of 10, 25, 50 and 100 day moving averages. This combined with what appears to be a flat opening in the stock market should help maintain mortgage rates at current levels.

Therefore, the best bet is to take advantage of stable markets 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