Monday, October 5, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 5th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.72
+3 bps (Prior Close – $101.69)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher from Friday's closing price. Bond prices are showing technical signs of being overbought and will likely start to head lower, which would make interest rates move higher.

Economic News: There will be another round of Treasury auctions this week, and as we have seen in the past, this creates volatility in the markets. Also, former Fed Chairman Alan Greenspan stated he believes unemployment will rise beyond 10%, he also advised against a second massive stimulus package for fear of the long-term negative consequences.

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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