Should I Float? Should I Lock? - Daily Update for Friday, October 2, 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. 

An additional 263,000 jobs were lost last month - much worse than expected.  Unemployment rose to 9.8% right in line with expectations.  Hourly Earnings and Average Work Week were also both a bit lower than expected.. 

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

Technically speaking - the FNMA 4.5% 30 year bond have broken through a resistance level but remains to be seen if it can maintain this due to the bond being high in overbought status.

I am recommending to

   LOCK your best mortgage rate.  (This is the closest I will come to going back to floating.  With lenders no longer offering over night pricing - this is an awesome time to lock in a great 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