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Should I float? Should I lock? - Daily Update for Tuesday, April 8, 2008

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.

Though bonds will be taking their lead from stocks this morning, the report that could have an impact will be released later today - the minutes from the Fed's last meeting.  Stock and Bond traders alike will be looking to see what was discussed and what the Fed will be likely to do the next time they meet. 

Technically speaking - the FNMA 5.5% 30 year bond bounced nicely off a key support level yesterday.  Depending on what happens throughout the day, a test of the 2 1/2 year mark could occur in the next couple days. 

As always, things depend on your personal style.  Pundits will be recommending to float though for me 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

Nathan Diones
Regioncy Real Estate - Redlands, CA
Yes I would definitely advise all my clients to lock their rates. Who knows what can happen. Thanks.
Apr 08, 2008 01:52 AM
JDo Doe
Barrington, RI
Nice entry - love the information...
Apr 08, 2008 03:01 AM
Lu Kalaj
Vision Realty Centers - Brighton Township, MI
I just noticed you do a daily update.  That is great.... Thanks for doing that.  I sure is a great way to keep people aware on a daily basis.  Good job.  Lu
Apr 09, 2008 01:54 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Matthew,

I always enjoy your posts. I may have asked before but what do "you " see long term for rates? 6 months? 12  months?

Apr 09, 2008 02:03 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist
Depending on how quickly the economy recovers or stays where it is, I see rates pretty much staying where they are (within 1/2% either way) for the next 6 - 12 months.
Apr 09, 2008 02:23 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Thanks Matthew,

 That is my opinion as well!

 

Apr 10, 2008 05:50 AM