Should I float? Should I lock? - Daily Update for Thursday, October 2, 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.

Senate passed the bailout bill that so many Congressionals disliked - I guess you can put lipstick on a pig. Jobless Claims came in markedly higher than expectations, which could give a boost to bonds this morning. Now we just wait for the other shoe to drop - to see if Congressionals also like lipstick on a pig.

Technically speaking - the FNMA 5.5% 30 year bond bounced nicely off the 200 day moving average yesterday. Bonds are also heading toward an oversold state right now. This will help when the inevitable bull run next occurs.

Until current 3 year highs are broken in a significant manner, I am recommending to

LOCK your mortgage rate.

To learn why one should Float or Lock -

Check out Should I float? Should I lock? & Reasons to Float or Lock