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Should I Float? Should I Lock? - Daily Update for Monday, October 5, 2009

By
Mortgage and Lending with Amerisave Mortgage Corporation

Should I Float? Should I Lock? - Daily Update for Monday, October 5, 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

With the Service Sector Index coming in slightly better than expected as well as higher than last month, this is allowing investors are moving forward with stocks and selling bonds to support their habit.

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

Technically speaking - the FNMA 4.5% 30 year bond having a tough time with its current resistance level. The bond being high in overbought status.

I am recommending to

   LOCK your best mortgage rate.  (This is the closest I will come to going back to floating.  With lenders no longer offering over night pricing - this is an awesome time to lock in a great 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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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Matt....good to see bond prices where they are.  The rates are the best right now....but a gambling man such as myself says hey....you can afford to give up a bit to gamble to get even better.  You're right with your advice, but I'll take the odds.

Oct 05, 2009 02:06 AM
Jeff Craig
Hang Me Up Photos - Jamestown, NC
Greensboro Area Real Estate Photography

Always the big gamble for our customers when they are building.

Oct 05, 2009 02:14 AM