Mortgage Market Snapshot 5/8/12
Today's bond market was interesting... Like the little engine that could. The FNMA 3.5 coupon tried and tried to pull away from 104 but like being on a bungee cord as soon as it slowly but steadily climbed to 104.25 it soon was pulled back to just over 104.
I think we will find it hard pressed to continue this upward trend with any amount of sustain to it.
Pricing is at the best levels of the year and to think there is much more to gain by floating is taking on risk that has a lot of potential for loss with only minimal in potential for gain. This is not my kind of bet.
If closing on a loan for the month of May and not locked yet - LOCK!
If closing on a loan withing 30 days - LOCK
If closing on a loan within 60 days - float cautiously
Unemployment and EU issues are still of heavy concern and granted its still an election year (thank goodness... time for change) but reality is I see much more potential for down than improvement in the current market.
Don't get greedy and take the best prices in history and laugh all the way to the bank!
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