Current Pricing of FNMA 30 Year 4.5% Bond: $101.91
+3 bps (Prior Close – $101.88)
Market Update: Mortgage Backed Security (MBS) pricing is slightly higher today from yesterday's close. From a technical analysis stand-point, MBS prices look to be at the top of the current trading range and there is significantly more risk to float versus locking. A decrease in Bond prices will result in higher home financing rates for borrowers.
Economic News: Producer Price Index for October, which measures wholesale inflation, was reported lower than expected. This is good news for Bonds and indicates there is no fear of inflation currently. Also in the news, Capacity Utilization and Industrial Production were reported essentially in line with expectations.
Recommendation: LOCK
Contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com to find out how to take advantage of today's best loan rates.
The decision to float or lock your interest rate can save, or cost, you thousands of dollars over the life of your new mortgage. Our recommendation doesn't apply to all borrowers, so if you have questions please contact us directly.
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