Friday, October 30, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 30th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.12
+34 bps (Prior Close – $100.78)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterdays close. Bonds are higher today as the Stock market is in free-fall. The Treasury Department's record $123 Billion in auctions are completed, which is also giving Bonds a lift today. With MBS prices moving higher, home mortgage interest rates move lower.

Economic News: Personal Income was reported unchanged in September, while Consumer Spending fell 0.5%. Also in the news, some encouraging reports came from release of the Chicago PMI and the Michigan Consumer Sentiment, which both came in better than expectations with mildly positive numbers.

Recommendation: FLOAT

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

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

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