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 stocks took off on a merry ride closing up nearly 51 points. This was only after fluctuating wildly. Bonds took a sharp hit by dropping almost 1/3 of a point. In terms that we can understand, rates got worse by a third.
Today will be a short trading day due to tomorrow's close for Thanksgiving. Prices may be volatile today and Friday due to this shortened trading day.
News released today is consumer sentiment was a bit higher then expected and jobless claims came in at expected levels. This couple with the stock market taking a dive - currently down 125 points - will result in good news for bonds
Technically speaking. The FNMA 6.0% 30 year bond is approaching oversold conditions and could be bouncing off the 25 day moving average.
With the news released and the expected bouncing, the recommendation for the day is to
Float.
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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