Should I float? Should I lock? - Daily Update for Monday, July 7, 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.

Since this is a rather slow week in terms of scheduled economic reports, bonds will be taking direction from stocks this week. With an apparent strengthening of the dollar and a (small) drop in oil prices look for stocks to go up and bonds to come down (rates go up as well).

Technically speaking - the FNMA 6.0% 30 year bond has fallen below the 10 day moving average. With an apparent increase in the stock market and a long way to go on the downside before another level of support for bonds, now would be...

... a great time, if you haven't done so yet, to

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