Friday, October 9, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 9th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.34
-47 bps (Prior Close – $101.81)

Market Update: Mortgage Backed Security (MBS) pricing is significantly lower today from yesterday's close. Our recommendation all week has been a locking-bias, as MBS have shown technical signs of being overbought. Yesterday's 30-year Treasury Bond auction was so poorly received, it has caused selling pressure to carry forward to today's trading. With Bond prices heading lower, this causes home mortgage interest rates to move higher.

Economic News: There is no economic news for release today. The Bond market will be closed Monday in observance of Columbus Day.

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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