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
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