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. 

"Economy Falls More Than Expected" - You have got to be kidding.  Last quarter the GDP fell 6.1%, not nearly as bad as the previous quarter but "worse than analyst expectations".  Considering the economy might be bottoming out and possibly even coming a bit out of the doldrums, the bit of news is just bad reporting. 

Bonds fell down to support levels yesterday on unexpected improvement of consumer confidence.  Hopefully you took the advice yesterday and locked in the rather good rates which came out yesterday morning.  Today there will be several auctions of 3 yr, 7 yr, and 10 yr Treasury Notes.  This could cause some problems if the auctions don't go as well as hoped for.

Technically speaking - the FNMA 4.0% 30 year bond is bouncing off of resistance levels and is currently approaching overbought levels..

I am recommending to

   LOCK your best mortgage rate.

To learn why one should Float or Lock -

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

     To obtain rates and fees with a $500 guarantee - come visit