Special offer

Should I float? Should I lock? - Daily Update for Wednesday, January 30, 2008

By
Mortgage and Lending with Amerisave Mortgage Corporation

Here are the daily thoughts on 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.

Gross Domestic Product (GDP) was released today coming in lower than expected.  Auto Sales were also released coming in at expectations.  A wee bit confusing as the Auto Sales show the economy not slowing down as much as expected.  (Perhaps there is no recession)

Technically speaking - the FNMA 5.5% 30 year bond fell below the 10 day moving average again.  The bond is still very near the overbought range. 

With the Fed meeting coming to a close today, expect to see another 1/4% drop in the Fed Funds rate.  As rates improve briefly and as they will continue to worsen it would be best to   

     Lock!

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

 

Comments (2)

Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate
I can't wait to hear what the Fed's do today although it may not make much of an impact.  Thanks as always for your insight!
Jan 30, 2008 12:02 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist
I am fearful on what the Fed is going to be doing today.  I only hope they don't overreact!  Yet, by definition - that is what they do.
Jan 30, 2008 12:34 AM