Monday, September 14, 2009

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 14th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $100.75
-3 bps (Prior Close – $100.78)

Market Update: Mortgage Backed Security (MBS) pricing is slightly lower this morning from Friday. President Obama imposed tariffs on Chinese tires, then the world’s fastest growing major economy said it is investigating U.S. sales of chicken and auto products. As a result, there is some concern that China could sell some of their Mortgage Bonds, which would cause home loan rates to increase.

Economic News: There are no scheduled economic reports due to be released today so Bonds will take direction from Stocks.

Recommendation: FLOAT

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

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