Should I Float? Should I Lock? - Daily Update for Wednesday, September 23, 2009

Here are the daily thoughts on interest rate 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. 

Nothing major on the economic calendar until this afternoon when the Fed releases the results of their meeting.  It is still largely suspected the Fed will continue to do nothing as there have been no real signs of inflation nor a significant turnaround in the economy.  Even with these suspicions, bonds are holding their breath and sinking away from resistance levels back towards support levels.

Look for rates to worsen this morning when rate sheets are released by Amerisave Mortgage Corporation.

Technically speaking - the FNMA 4.5% 30 year bond has descended below the 200 day moving average.  The bond is coming down from overbought status.

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