FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 24th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $99.81
-22 bps (Prior Close – $100.03)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to roughly .25% of your loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

We're still taking the float approach on slightly longer term (20-25 day) transactions. The market has been oversold but look for rates to start moving up with the ending of the Fed MBS purchase program.

Economic News: Initial Jobless Claims were reported better than expectations, and Durable Goods Orders rose in November.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 23rd, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.16
+16 bps (Prior Close – $100.00)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to roughly .125% of your loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

Economic News: The Core Personal Consumption Expenditure Index, which measures inflation, was reported lower than expectations. Personal Spending and Personal Income were also reported lower than analysts expected. The Personal Savings rate remained steady, showing Americans are still saving their money. New Home Sales surprised to the downside, following the strong Existing Home Sales print yesterday. The New Home Sales miss, combined with the tame inflation data likely helped bond prices this morning.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 22nd, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $99.64
-62 bps (Prior Close – $100.26)

Market Update: Mortgage Backed Security (MBS) pricing is significantly lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .625% of the loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: Existing Home Sales were reported slightly higher than expected and the inventory of unsold homes fell to a 6.5-month supply. Overall, this is a good news, but likely due to the perceived ending of the Homebuyer Tax Credit.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 21st, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.72
-50 bps (Prior Close – $101.22)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from Friday's close. For a consumer, this translates into an upfront fee increase equivalent to .50% of the loan amount in order to obtain the same rate available Friday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: There are no economic reports due out today, but the rest of the week will be filled with reports due out through Thursday. Also, on Wednesday the Treasury Department will announce next week's Treasury auctions, which have added volatility in the past.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 17th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $101.50
+59 bps (Prior Close – $100.91)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to more than .50% of the loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

We've had a floating bias since the major price deterioration over the last week. Pricing has improved dramatically and rates/fees should continue to move lower.


Economic News: Initial Jobless Claims rose higher than expected.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 16th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.91
+6 bps (Prior Close – $100.85)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to .06% of the loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

We've had a floating bias since the major price deterioration over the last week. Pricing hit levels of support yesterday and rates/fees should continue to move lower.


Economic News: Consumer Price Index (CPI) was reported in line with expectations, signaling that inflation remains low for the moment. Housing Starts for November were also in line with estimates while Building Permits, which are a leading indicator of housing construction, reached the highest level seen in the past year.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 15th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.84
-25 bps (Prior Close – $101.21)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .25% of the loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

We've had a floating bias since the major price deterioration over the last week. Pricing hit levels of support today so we should see a move down in rates unless inflationary news continues to spook the market.


Economic News: Producer Price Index, which measures wholesale inflation, came in significantly higher than expected. The Empire State Index of manufacturing in New York showed the largest monthly decline on record in December. Industrial Production came in a bit higher than expected, rising in November by the most in three months.

Recommendation: FLOAT

The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.