Friday, November 13, 2009

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 13th, 2009 - FLOAT or LOCK?

Current Pricing of FNMA 30 Year 4.5% Bond: $101.72
+22 bps (Prior Close – $101.50)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. We made the wrong call yesterday on locking, but still feel like the market is overpriced. The Federal Reserve stepped in and bought more MBS yesterday afternoon, which helped with a poor 30-Year Treasury Bond auction. After a sharp sell-off, we changed our recommendation to a locking bias. We still feel it is prudent to take a conservative approach over the next few months. With Bond prices higher, home mortgage interest rates are slightly lower for borrowers.

Economic News: Consumer Sentiment came in lower than expectations at 66.0 versus 71.0 estimated.

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

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.

No comments: