Current Pricing of FNMA 30 Year 4.5% Bond: $100.78
-3 bps (Prior Close – $100.81)
Market Update: Mortgage Backed Security (MBS) pricing opened nearly unchanged today from yesterday's close. Traders are anxiously awaiting the statement being released today from the Federal Reserve on interest rates and current Policy Statement. With MBS prices flat, home mortgage interest rates remain unchanged. Today's trading could be especially volatile so we're taking the conservative approach and recommending protecting your interest rate.
Economic News: The House of Representatives approved legislation to extend and expand the $8,000 tax credit for first time homebuyers. The tax credit is not a done deal, however, a bill may reach President Obama for his signature by the end of this week. Also in the news, the Treasury announced this morning $81 Billion in Treasuries will be auctioned off next week. This will probably drag MBS prices lower, since MBS compete with Treasuries for investment dollars.
Recommendation: LOCK
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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