Wednesday, October 7, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 7th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.78
+16 bps (Prior Close – $101.62)

Market Update: Mortgage Backed Security (MBS) pricing is up today from yesterday's close due to a weak stock market, a strong dollar, and the FED buying up bonds ahead of the 10-year Treasury auction. With Bond prices heading higher, this causes home mortgage interest rates to move lower.

Economic News: Additional Bond supply is hitting the market today, as the Treasury will auction off $20 Billion in 10-year Notes. Yesterday's 3-year Note auction was not received very well, so Traders will be watching today's auction for signs of buying.

Recommendation: FLOAT

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

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