Should I Float? Should I Lock? - Daily Update for Thursday, October 8, 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. 

The Consumer Price Index (CPI) report was release this morning.  Surprisingly, core CPI readings showed an increase.  The Empire Index came in quite a bit better while the Philadelphia Index was depressed.  Lastly Jobless Claims for last week were down slightly.  This all on top of yesterday's suprising news is pushing bonds below the 200 day moving average. 

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

Technically speaking - the FNMA 4.5% 30 year bond has dropped to the 200 day moving average. The bond is far from overbought status.

I am recommending to

   LOCK your best mortgage rate.  I 

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