Wednesday, September 16, 2009

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

Current Pricing of FNMA 30 Year 4.5% Bond: $100.59
+12 bps (Prior Close – $100.47)

Market Update: Mortgage Backed Security (MBS) pricing is higher this morning from yesterday's close. High volatility continues in the Bond market this morning as the economic reports started rolling in. It is now "official" the recession is over; Bernanke blessed it yesterday, Warren Buffet this morning.

Economic News: Consumer Price Index was reported slightly higher than expected this morning. After stripping out volatile food and energy, however, the Core CPI was in line with expectations at an increase of 1.4% year over year. Capacity Utilization and Industrial Production both came in a little hotter than expected by Wall Street.

Recommendation: FLOAT

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

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