Here are the daily thoughts on floating or locking if you are asked by your clients.
Video Version available - http://www.youtube.com/watch?v=BhATGA9I5ns
As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.
Housing Starts, Permits, Consumer Price Index (CPI) and core CPI all came in lower than expected. Normally one would see a nice jump in bond prices, but with the bond overbought, trying to break multi-year highs and the Fed expected to lower the prime lending rate this afternoon to historic lows - the bond is holding steady in its tight trading range.
If the Fed lowers rates today, a nice spike will occur in bonds but then come back down - possibly falling back through major support levels.
Technically speaking - the FNMA 5.0% 30 year bond fell to support levels yesterday. With bonds heading back into the overbought range this will prove more difficult.
I am recommending to
LOCK your mortgage rate (until bonds close above the 3 year mark).
To learn why one should Float or Lock -
Check out Should I float? Should I lock? & Reasons to Float or Lock
To obtain rates and fees with a $500 guarantee - come visit
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