Current Pricing of FNMA 30 Year 4.5% Bond: $101.81
+28 bps (Prior Close – $101.53)
Market Update: Mortgage Backed Security (MBS) pricing is higher today from Friday's close. After 6 days of price declines, MBS are improving today. An increase in bond prices causes home loan rates to decrease. From Friday, MBS have gained 28 bps. For a consumer, this translates into a reduction of cost of .25% to obtain the same rate available on Friday for a home loan.
Economic News: There are no economic reports for release today, and the calendar for the rest of the week is light with news. Bond trading could be volatile when the results of this week’s Treasury auctions are announced.
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.
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