Monday, November 2, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 2nd, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.09
-9 bps (Prior Close – $101.18)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from Fridays close. Bonds are taking a little breather today as Stocks are higher on positive economic data. With MBS prices moving lower, Phoenix home mortgage interest rates move higher.

Economic News: The Institute of Supply Manager's Manufacturing Index rose to 55.7 versus expectations of 53.0. Within the report was an improved reading on employment, suggesting businesses in the manufacturing sector may be hiring. There are several important events this week, including the Fed Meeting and Monetary Policy Statement on Wednesday, the Jobs Report with unemployment rate data on Friday, and an expected final vote on the extension of the first-time homebuyer tax credit.

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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