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Should I float? Should I lock? - Daily Update for Monday, January 28, 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.

Last week's fears and roller coaster are not yet a distant memory.  Overseas markets took a beating today and those fears look to be passed on to US markets.

The Fed has their regularly scheduled meeting on Wednesday.  This coupled with some possibly highly volatile news towards the end of the week could have traders pausing to see how things pan out.

Technically speaking - the FNMA 5.5% 30 year bond is bumping up against the 10 day moving average.  This coupled with the bond moving out of the overbought range could move prices lower and rates higher. 

For the short term - it would be best to   

     Lock!

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

Comments (4)

Allen C. Wright
RealtyU - Aliso Viejo, CA
NS, AHS, REPS

Matthew,

What is your gut feeling of 30 year fixed going under 5%?  You can answer privately if you desire

Jan 28, 2008 02:45 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Allen - it woud take a major slowdown in the economy for that to happen.  I honestly don't see that happening anytime soon.

Let's just say it won't happen before the Fed Funds rate goes under 3%.

Jan 28, 2008 03:25 AM
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Matt, Like I have said before I really enjoy your serious on AR.  At this point today I would also to be safe lock because of the program that you select might change.
Jan 28, 2008 09:43 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist
Yes, Matthew, guidelines have been changing frequently.  Perhaps once the dust settles and a better view of the horizon presents itself, things will change less frequently.
Jan 28, 2008 10:26 PM