Should I float? Should I lock? - Daily Update for Tuesday, May 20, 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.

The Producer Price Index (PPI) - the cost of supplies to produce consumer goods - came in below expectations. Though stripping out the volatile energy and food prices, the core PPI was higher than expected.

Technically speaking - the FNMA 5.5% 30 year bond jumped yesterday as the stock market slid from its daily high. This morning the bond is rallying due to both the PPI slipping and stock markets down around the globe.

Thought this increase in bonds is good, they are also getting ready to bump up against a rather solid celing of resistance. Take advantage of what comes out in today's pricing 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