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Should I float? Should I lock? - Daily Update for Tuesday, January 29, 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.

Today the Durable Goods report came out for December.  Good Economically speaking, the report show a rise of 5.2% almost triple what the pundits thought it would be.  Another sign that perhaps the Fed reacted hastily in their decision last week. 

Remember the Fed meets tomorrow.  Guesses are anywhere from no cut upto another 3/4% cut (highly improbable).  Best guesstimates are another 1/4% cut is in the works.

Technically speaking - the FNMA 5.5% 30 year bond is jumped above the 10 day moving average yesterday.  The bond is just below the overbought range. 

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

Kathleen Vetrano
RE/MAX Gateway - Falls Church, VA
Helping YOU Achieve YOUR Dreams
Hi Matthew,  You provide very good economic data here.  That always helps in the decision making process.  Great information.  Thank you.
Jan 29, 2008 01:04 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Matthew can't wait to see what action will be taken tomorrow and what the effect will be.
Jan 29, 2008 02:04 PM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Kathleen - thank-you.  Anytime you want to have me take a look at a client and help advise - my door is open.

Jennifer - Predicting a 1/4% cut, rates to improve on the day, then worsen over the next couple weeks.

Jan 29, 2008 11:19 PM