Friday, November 6, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 6th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.28
+22 bps (Prior Close – $101.06)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. MBS prices are up on the day which drives home mortgage interest rates lower.

Economic News: Some volatility today, as the market digests worse than expected Unemployment data. Non-farm Payrolls came in at -190,000 vs. the expected -175,000. The Unemployment Rate jumped to 10.2% from 9.8%, well above the 9.9% forecast by economists. Economic data like this will certainly have many expecting rates to stay lower, longer.

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

Recommendation: FLOAT

For information on home financing, 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 or refinancing, please contact us directly.

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