Thursday, October 8, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 8th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.75
-15 bps (Prior Close – $101.90)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. MBS have been showing technical signs of being overbought. Prices have been unable to make a convincing move higher, thanks to recent Treasury auctions and a continued Stock market improvement. With Bond prices heading lower, this drives home mortgage interest rates to higher.

Economic News: Weekly Jobless Claims came in lower than expected, although not by much. The Stock market is in rally mode again today on strong earnings, a weakening dollar, and not-so-bad Initial Claims. Yesterday's 10-year Treasury Note auction was strong, but today's 30-year Bond showing was not so great, getting graded a "C".

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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