Wednesday, October 21, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 21st, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $100.75
-12 bps (Prior Close – $100.87)

Market Update: Mortgage Backed Security (MBS) pricing is starting the day lower today after yesterday's close. Selling pressure was provided by worldwide chatter on tightening monetary policy and seemingly improving earnings in the financial sector. Also weighing on rates is the realization that the FED will cease its $300B Treasury bond buying operations at month-end. The FEDs purchase of Treasury Securities has had some impact on Bond yields, influencing rates throughout the globe. The FED will continue to manipulate the mortgage bond market though, at least for now. With MBS prices moving slightly lower, home financing interest rates move higher.

Economic News: There are no economic reports due for release today. MBS are likely taking direction from inflationary fears and the ending of FED intervention in the Bond markets.

Recommendation: FLOAT

For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email

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