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.
The Jobs Report that came out Friday - the worst in 5 years - had various markets worried. But as they say with the attention span of your average American only being a few minutes, the span of the investor isn't much longer. Though there are continued fears of the Fed cutting rates further (weaker dollar, expensive oil, worsening bonds), the stock market is taking it in stride. Big news of the week, retail sales and consumer price index, will be released later in the week. For now bonds will be taking direction from stocks.
Technically speaking - the FNMA 5.5% 30 year bond smashed back above the 200 day moving average on Friday. Indicators also show that the bonds is rather oversold which could indicate a continued improvement in the bond market.
With bonds in a drift mode until the big news later in the week they are apt to drift in the path of least resistance - which is currently down. Therefore I am going to still recommend that one
Lock your interest rate.
To learn
why one should Float or Lock -
Check out Should I float? Should I lock? & Reasons to Float or Lock
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I agree... for the short term... next week or ten days... Especially if you are buying a house...
LOCK AND LOAD..... We can hope for lower rates, but whether we can wet our beaks in 5.75% 30 year fixed rate money again soon is a whole 'nother story!!