Should I float? Should I lock? - Daily Update for Thursday, June 12, 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.

Good Economic News - Retails Sales came in markedly higher than expected for last month. Pundits think this has to do with the stimulus checks that were sent out. The other big/good news is Bernanke's comments yesterday on declaring a war on inflation. As spoken of yesterday this will mean that interest rate hikes will be on the horizon (look for a hike by year's end).

Technically speaking - the FNMA 6.0% 30 year bond bounced off of support levels yesterday. With this morning's economic news, the bond has fallen again.

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