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Should I float? Should I lock? - Daily Update for Wednesday, November 12, 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.

Yesterday, a new mortgage plan was released by the Federal Government taking aim at Fannie & Freddie loans.  While helping a bunch of folk, it does appear to lack some needed provisions for loans not held by the two mortgage behemoths.  Economically speaking - retail sales are looking rather bleak.  Though the official report isn't due out until Friday, many retailers are reporting lower than expected numbers.

Technically speaking - the FNMA 6.0% 30 year bond fell below the 200 day moving average on Monday due to a bond rollover and to weaker than expected Treasury Note sales.  The bond is coming down from an overbought state..

I am recommending to

  LOCK your mortgage 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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