Tuesday, November 3, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 3rd, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $100.81
-13 bps (Prior Close – $100.94)

Market Update: Mortgage Backed Security (MBS) pricing opened lower today. Bond prices are currently trading above key technical support levels. With MBS prices moving lower, home mortgage interest rates move higher.

Economic News: There are no economic reports being released today. Although, the Federal Reserve begins its 2-day Federal Open Market Committee meeting this morning. The Fed will release a public statement tomorrow afternoon on their assessment of the economy. The markets will look to see if the Fed mentions when they will begin removing the accommodative policy and begin to hike rates.

Recommendation: FLOAT

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

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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