Should I float? Should I lock? - Daily Update for Friday, May 23, 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.

Continued doom and gloom relating to oil. Two major airlines announced today that their coveted plans to increase direct flights to China have been postponed due to the ever increasing cost of oil. While not directly affecting bonds, there is certainly an indirect consequence. With the stock market is showing signs of weakness, bonds are appearing to make a run for the Northern Border.

New Homes Sales came in at expected levels - though still lower than previously reported.

Technically speaking - the FNMA 5.5% 30 year bond dropped below support levels yesterday. This means that yesterday's support levels are today's resistance levels.

If you haven't done so yet

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