Thursday, November 12, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 12th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.22
+0 bps (Prior Close – $101.22)

Market Update: Mortgage Backed Security (MBS) pricing is unchanged today from yesterday's close. The $16 Billion of 30-year Treasury Bonds had poor auction results, which is spooking investors and causing inflationary fears. With Bond prices unchanged, home mortgage interest rates remain the same for borrowers.

Economic News: Weekly Initial Jobless Claims came in at 502,000 versus 510,000 consensus estimate. This report means, over half a million people per week are still losing their jobs.

Recommendation: LOCK

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