Thursday, September 10, 2009

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 10th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.97
+28 bps (Prior Close – $100.69)

Market Update: The Mortgage Backed Security (MBS) pricing is higher this morning from yesterday. Yesterday's Treasury auction showed good foreign participation and helped MBS close higher.

Economic News: Initial Jobless Claims were reported better than expected, but still at a high level. Continuing Claims, which represent the number of people still receiving benefits, dropped a bit but this is probably due to benefits expiring rather than people finding new jobs.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

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