Tuesday, November 10, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 10th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.31
+22 bps (Prior Close – $101.09)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. The Stock market is coming under some pressure today from the recent 2-day rally and Bonds will likely be the beneficiary. With Bond prices increasing, this lowers home mortgage interest rates for borrowers.

Economic News: There are no economic reports today but there is plenty of supply hitting the market from the Treasury auctions announced last week. Most of the recent Treasury auctions have been well received, with plenty of foreign participation. For the time being, this has helped keep long-term interest rates at their current levels. How long this support continues remains to be seen.

Recommendation: FLOAT

To take advantage of today's low home prices and best loan rates, 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 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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