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.
WOW! Not only did the Fed drop its target of the Prime Lending rate to near 0% but the Fed also said it would be buying up Mortgage Backed Securities which will actually help with long term interest rates. Let the party begin!
Technically speaking - the FNMA 4.5% 30 year bond broke through multi year highs with a vengeance yesterday and doesn't look to be slowing down. The bond is still in the overbought range so look for testing of this level for several days before an actual upward trend can be sustained.
I am recommending to
LOCK your mortgage rate (stays above the multi year average for a couple days).
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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