Current Pricing of FNMA 30 Year 4.5% Bond: $100.72
-9 bps (Prior Close – $100.81)
Market Update: Mortgage Backed Security (MBS) pricing is starting the day lower today after yesterday's close. Selling pressure was provided by the massive amount of debt being auctioned by the Treasury Department. The Treasury announced that it would auction $123 Billion in Treasury Bonds, made up of 2,5 and 7 year Notes, along with some 5 year TIPS (Treasury Inflation Protected Securities). This means our government needs to borrow $123B, and that just gets us through two weeks. These are without a doubt, unprecedented times. With MBS prices moving slightly lower, Phoenix home financing interest rates move higher.
Economic News: Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of current unemployment benefits expiring, without beneficiaries having been able to find jobs.
Recommendation: FLOAT
For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.
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