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Should I float? Should I lock? - Daily Update for Tuesday, March 25, 2008

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.

Stocks rising on shareholders realizing their investment is worth more and demanding more - oh my. That's what happened yesterday with Bear Stearn's shareholders saying enough is enough. This "vote of confidence" shored up stocks yesterday and beat down bonds. The existing home sales coming out yesterday came in higher yesterday indicating that not all the general public believe the media in their gloom and doom reporting.

This morning consumer confidence came in quite a bit lower than expected (hitting 5 year lows). This is creating a negative impact on stocks and a positive one for bonds.

Technically speaking - the FNMA 5.5% 30 year bond bounced off of a key level of support yesterday and is continuing to rise this morning. Bonds are also seen to be in an overbought range.

With all this - I would still recommend one 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

Posted by Matthew Rosov, Certified Mortgage Planning Specialist on 03/25/2008 09:14 AM

Comments (4)

mortgage rates, education, tips, maryland mortgages, lock, market reports, interest rates

This post has been included in Maryland Information

4 Comments on Should I float? Should I lock? - Daily Update for Tuesday, March 25, 2008

Thanks for the information and tip. How is the prospect of inflation affecting the rates right now?

03/25/2008 09:24 AM

by ERA Heavener Realty Co.

Only when either major news items about inflation come out or when an economic report that is tied to inflation shows adverse conditions. Other than that - it's built into the daily thinking of the traders.

03/25/2008 09:29 AM

by Matthew Rosov, Certified Mortgage Planning Specialist (Envision Lending Group)

Matthew...good info. I also tell my clients that if they are just barely qualifing don't gamble LOCK IN. In todays market...waiting just 10 min. could raise you rate!

03/25/2008 09:31 AM

by William Feela Owner/Broker North Branch,MN (Whispering Pines Realty)

After yesterdays news, I was curious as to where you would go with this today. Thanks, as always!

* OK, the word is dangleberry and I'm wondering whether it might jazz this column up a bit if you change the title to "Should I Dangle? Or should I Lock?" LMAO!!!!! *

and p.s..... we would LOVE to see you enter the Mortgage Creative Writing Challenge!!

03/26/2008 10:27 PM

by Portland Oregon Real Estate Broker * Jennifer Bukaty * (RE/MAX equity group, inc.)

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