Friday, September 25, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 25th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.03
+9 bps (Prior Close – $100.94)

Market Update: Mortgage Backed Security (MBS) pricing is currently higher today from yesterday's close. The market opened slightly lower but has been improving as Stocks are declining.

Economic News: Durable Goods Orders for August unexpectedly dropped 2.4% for the largest decline since January. Durables Goods are defined as orders for goods that last 3 years or more, like flat screen TV's, furniture and appliances. Additionally, New Home Sales for August were reported only slightly lower than expectations. However, the report showed some signs of an improving market as the inventory of unsold homes dropped to its lowest level since January 2007. This report is likely due to less construction from new home builders as opposed to increased demand.

Recommendation: LOCK

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

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