Special offer

Should I Lock? Should I Float? - Daily Update for Tuesday, April 1, 008

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.

A national index of purchasing executives was released today- ISM Index - coming in slightly higher than expected.  This coupled with a key economic report on construction spending coming in better than expected has given boost to the stock market.  Lastly, the large European bank, UBS, said that it wrote down $12.1 Billion or over $90 Billion in losses over the past 9 months due to the continued "sub-prime" debacle. 

Technically speaking - the FNMA 5.5% 30 year bond has fallen below the 10 day moving average and bounced of the 50 day moving average! If it can continue to hold above the 50 day moving average then things will be ok - if not - there could be another increase in rates.

As always, things depend on your personal style.  Until we break above the current 2 1/2 year ceiling I am 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

Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate
Matthew, thanks for another great daily insight into the mortgage market.  Rates are certainly low!
Apr 01, 2008 04:20 AM
Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Matthew! Thanks for writing a great post on the Mortgage market. I am definitely going to check out your posts on Should I float? Should I lock? and Reasons to Float or Lock. And I see that you are in Laurel,MD. I am definitely going to add you as one of my associates. Great post.

Apr 01, 2008 05:15 PM