Should I Float? Should I Lock? - Daily Update for Wednesday, September 30, 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. 

GDP came in a bit higher than expected though still showing a contraction of just under 1%.  ADP reported jobless lower than expected yet better than last month's reading. This along with yesterdays weaker than expected Consumer Confidence and the current selloff in the stock market is helping bonds to maintain its current mark near a key ceiling level.

Look for rates this morning to remain where they closed yesterday when rate sheets are released by Amerisave Mortgage Corporation.

Technically speaking - the FNMA 4.5% 30 year bond has stayed above the 200 day moving average and attempting to stay above support levels.  The bond is high in 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