Tuesday, December 1, 2009

FLOAT OR LOCK? Daily Market Update and Recommendation - Dec 1st, 2009

Current Pricing of FNMA 30 Year 4.5% Bond: $102.47
-15 bps (Prior Close – $102.62)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. Bonds appear to be headed lower in price (rates moving higher) as credit concerns from Dubai have faded. The U.S. Dollar is showing weakness, yet again, as Stocks, Oil, and Gold are all moving higher.

Economic News: Pending Home Sales report came in better than expected, and the Institute of Supply Manager's Index was reported slightly lower than expected. Bonds had little reaction to either report.

Recommendation: LOCK

If you're considering purchasing or refinancing, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com to find out how to take advantage of today's best loan rates.

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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