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.

Mixed bag of news today.  Personal Income Expenditures held at expected levels, though personal income and spending was up slightly in December.  Jobless claims came in higher than expected.  All this roughly translates to good news for bonds.  This shows inflation being held in check (for the moment).

Technically speaking - the FNMA 5.5% 30 year bond had stayed below the 10 day moving average yesterday.  In fact, it had dipped lower on the Fed cutting the Fed Funds rate.  On today's news, the bond has broken back above the 10 day moving average to where it started out before this current round of cuts. The bond has also moved back to being neither overbought nor oversold - which could translate into the bond moving higher and rates coming lower.

The pundits will be recommending to their subscribers to be floating today.  But with the history of rates getting worse after a Fed cut it will 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