Can anyone provide input on timeframe to expect lenders actually passing the gains on.  I know they are overloaded with new applications from last week, and that coupled with the holidays, they are probably trying to "turn the faucet off".  Our office generated a substantial amount of volume last week but by the time we could get them registered with the lenders, rates had already spiked up and we decided to float.  All of our sales from last week have interest rates between 4.5%-5%, which, at this point is underwater.

Any input on a floating stance in hopes of receiving the gains from lenders within the next few weeks as the 4.5 and 5 MBS are still well above 100 and seem to have establised a strong support.

David Nawrot:

All of our sales from last week have interest rates between 4.5%-5%, which, at this point is underwater.

YOU too huh?  This issue is going on in LO offices all across the country.  What other choice do we have to float, standing by with the finger on the trigger ready to lock when rates go down again?  I'm at least getting escrow opened and a prelim package submitted, I am confident enough that we will be there in the next 30 days that those apps will become closed loans by Feb 09.

I agree with Curt.  Get the loans submitted and underwritten, then you can lock on a 15 day and close.