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Should I float? Should I lock? - Daily Update for Tuesday, December 23, 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

Gross Domestic Product was released this morning falling 1/2% which was inline with what analysts had expected.  Some profit taking occurred yesterday with bonds falling back to the 10 day moving average. 

Technically speaking - the FNMA 4.5% 30 year bond fell back to the 10 day moving average yesterday and breached it this morning.  Bonds do appear to be coming off of the overbought range which will help with the next push to break to new highs.

I am recommending to

  LOCK your mortgage rate (stays above the multi year average for a couple days).

 

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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