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Should I Float? Should I Lock? - Daily Update for Wednesday, September 30, 2009

By
Mortgage and Lending with Amerisave Mortgage Corporation

Should I Float? Should I Lock? - Daily Update for Wednesday, September 30, 2009

Here are the daily thoughts on interest rate 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

GDP came in a bit higher than expected though still showing a contraction of just under 1%.  ADP reported jobless lower than expected yet better than last month's reading. This along with yesterdays weaker than expected Consumer Confidence and the current selloff in the stock market is helping bonds to maintain its current mark near a key ceiling level.

Look for rates this morning to remain where they closed yesterday when rate sheets are released by Amerisave Mortgage Corporation.

Technically speaking - the FNMA 4.5% 30 year bond has stayed above the 200 day moving average and attempting to stay above support levels.  The bond is high in overbought status.

I am recommending to

   LOCK your best 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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Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for the article. Active Rain is a great source of information.

Sep 30, 2009 02:15 AM
Sabrina Linman
SecurityNational Mortgage - Mount Vernon, WA
Mortgage Pro

I believe that clients should look for a lender the offers a "Rate Float Down Option". That way if they are locked in and the rates go down they can Float their rate down! This is HOT!!!

Sep 30, 2009 02:25 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Sabrina - yes, this is something which Amerisave offers.  A few days before closing if rates go down we split the difference with the borrower.  Say the rate dropped a half point - we will lower the rate a quarter point for the borrower.  Win/win situation.

Oct 01, 2009 12:47 AM