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.
WOW! The good/bad news is that Retail Sales fell through the floor. Instead of coming in at the expected level of a 0.2% increase, there was a drop of 0.2%. Mortgage backed securities should be having a field day. Instead they appear to have given up 2/3 of what they gained yesterday.
Update - It appears the reason for the drop in bonds is precipitated by rumors that a huge Amsterdam firm by tthe name of Carlyle Capitol may be forced to liquidate its mortgage bonds to remain afloat. This huge influx of securities would send prices through the floor and yields (i.e. rates) even higher.
Technically speaking - the FNMA 5.5% 30 year bond broke through the 10 day, 25 day and 100 day moving average. This morning, the bond should have rocketed above the 50 day moving average as well. Instead it dropped back down to the 10 day and has since bounced up a wee bit.
Looks like it's going to be another roller coaster day. Until some stability returns to the market I am still recommending to
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
;)
;)
