Should I float? Should I lock? - Daily Update for Tuesday, July 8, 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. Yesterday, bonds got off to a rocky start with oil dropping almost $4 and the dollar strengthening. Though this "good" news did not last with investors being spooked because of upcoming earnings reports from various Wall Street firms.

This morning stocks appear to be taking a continued turn for the worst.

Technically speaking - the FNMA 6.0% 30 year bond ended yesterday just above the 10 day moving average. If it can break above this resistance line, look for rates to improve.

Though this appears to be good news, I would recommend one 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