Mortgage backed securities are on quite a rally now, well above the lows of the day.  The concern is that we are right at the highest levels of the last couple months and it will be very difficult for us to break through.  It is our belief that until next year, this over head resistance will keep us from improving any further and preventing rates from moving lower. 

The key to properly choosing a lock time is to lock at the highs and float at the lows.  Well, we are at the highs and the risk of floating at this point probably outweighs the benefits of floating.   What we mean is the risk of rates getting worse are greater then the odds of rates getting better.  There is no need to rush and lock at this moment, but short term loans really need to consider locking before lender cut off.