Friday, October 2, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 2nd, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.69
-6 bps (Prior Close – $101.75)

Market Update: Mortgage Backed Security (MBS) pricing started out the morning with big gains but have since moved slightly lower from yesterday's closing price. Currently prices are showing technical trading signs of a reversal, which would cause interest rates to move higher.

Economic News: The Labor Department reported that 263,000 jobs were lost in September, which is quite a bit worse than what economist were expecting. In addition, the unemployment rate moved up to 9.8%. This news would normally be good for Bonds and bad for Stocks.

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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