Should my clients Float? Should they lock?
Rates as of Wednesday, April 22, 2009:
30 Yr Fixed – 5% (0 points)/ 4.75% (1 point)
15 Yr Fixed – 4.5% (0 points)/ 4.25% (1 point)
FHA – 5% (0 points)
Investment – 5.875% ( 0 points)/ 5.375% (1 point)- 25% down payment required
Each individual situation is unique, so I can best advice each client. However, here is a little background on what is happening in the mortgage world today. With no scheduled economic reports due out until Thursday, bonds are taking their lead from stocks again. With stocks looking to be opening down due to negative earnings from the likes of AT&T, Morgan Stanley and the apparent suicide of Freddie Mac’s CFO bonds are heading in the expected up direction.
Technically speaking – the FNMA 4.0% 30 year bond is caught in another tight trading range. The bond is apparently bouncing off of oversold levels – a good sign for a possible rally.
I am recommending to LOCK.
*35 day lock Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA)
*Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply