Monday FHA rates dropped as low as 5.25% with a couple of lenders and has been hovering in the neigborhood all week. I think rates will turnaround next week.
The chart below is a historical 1.5 year record of oversold and undersold Mortgage Backed Securities. Historically when Rates are undersold by .2 or greater the best result is to float and when they are oversold by minus 0.20 or less it is a good idea to lock. The chart is at a 1.5 year low and would be a good idea to lock rates as soon as possible.
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