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It depends on your time frame. If you have a couple of weeks or more that you can float I would suggest that you float. There is no fundamental reason why rates went up over the weekend and the data that I have seen does not support the rising interest rates. Mortgage bonds are flat to slightly up, but spreads between mortgage bonds and street level rates remain at unimaginable highs. We anxiously await the tightening of the spreads. Also, even though the Treasury has bought up $19bb in mortgage bonds in the last 2 weeks or so, the bonds remain flat to a slightly up. The reason is uncertainty. The bond market needs direction and it has none, with particular regard to prepayment speeds. Once bond traders and fund managers can accurately forecast prepayment speeds the gains that in bonds that we have seen since November will be passed on.
Fridays and Mondays are usually horrible days to lock as well. Fridays because it is the end of the week and everyone is taking profit and wrapping up. Mondays because it is the beginning of the week and noone has it together yet.
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Help with Mortgage!!
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