Monday, November 16, 2009

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Nov 16th, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $101.88
+12 bps (Prior Close – $101.76)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from Friday's close. From a technical analysis stand-point, MBS prices look to be at the top of the current trading range. A drop in Bond prices will result in higher home financing rates for borrowers.

Economic News: October Retails Sales were weak overall, but higher auto sales helped the headline number. Today, Fed Chairman Ben Bernanke will be speaking on the economy. There could be significant volatility in the Stock and Bond markets depending on Bernanke's statements about short-term interest rates and eventually removing economic stimulus.

Recommendation: LOCK

To take advantage of today's low home prices and attractive mortgage rates, 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 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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