Current Pricing of FNMA 30 Year 4.5% Bond: $102.16
-3 bps (Prior Close – $102.19)
Market Update: Mortgage Backed Security (MBS) pricing is nearly unchanged today from yesterday's close. Bond prices dropped pretty hard yesterday, most of the price decline was after we issued our daily recommendation calling for locking rates.
Economic News: The ADP Employment Report showed a loss of 169,000 private sector jobs in November. This report showed the least amount of job losses ADP has reported since July 2008, and it does mark 22 consecutive months of jobs lost. It is also worth noting that the ADP Jobs Report has not caught on as a reliable measure of economic activity. It is still a fairly new indicator and is not yet looked upon as one of the major indices.
Recommendation: FLOAT
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 won't apply in all situations, so if you have questions please contact us for clarification. Also, if you're considering purchasing or refinancing and you would like us to arrange your financing please contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.
For further clarification on the pricing of mortgages, click here.
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