The Blog of David Krushinsky

Contact Information For David Krushinsky

2011-01-21T15:09:00.000-08:00

David Krushinsky
Mortgage Professional
AmeriFirst Financial, Inc.
P: 480-339-1566
E: david@dkhomeloans.com
F: 480-339-1616
W: www.dkhomeloans.com

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 31st, 2009

2009-12-31T12:09:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $99.84
-9 bps (Prior Close – $99.93)

Market Update: Mortgage Backed Security (MBS) pricing is slightly lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to roughly .125% of your loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: Pushing Bonds down early this morning was the Initial Jobless Claims report, which came in well below estimates and at the lowest reading since July 2008.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 30th, 2009

2009-12-30T14:12:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $99.94
+12 bps (Prior Close – $99.82)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to roughly .125% of your loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

Economic News: The Treasury auction results have been average, at best, but the market was expecting disappointment, so Bond prices have been increasing this week.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 28th, 2009

2009-12-28T14:37:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $99.47
-34 bps (Prior Close – $100.03)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from last week's close. For a consumer, this translates into an upfront fee increase equivalent to roughly .375% of your loan amount in order to obtain the same rate available last week for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

We're still taking the float approach on slightly longer term (20-25 day) transactions. The market has been oversold but look for rates to start moving up with the ending of the Fed MBS purchase program.

Economic News: There are no economic reports due out today, and in fact, the entire week is fairly slow with only a handful of reports scheduled for release.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 24th, 2009

2009-12-24T13:59:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $99.81
-22 bps (Prior Close – $100.03)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to roughly .25% of your loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

We're still taking the float approach on slightly longer term (20-25 day) transactions. The market has been oversold but look for rates to start moving up with the ending of the Fed MBS purchase program.

Economic News: Initial Jobless Claims were reported better than expectations, and Durable Goods Orders rose in November.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 23rd, 2009

2009-12-23T08:34:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.16
+16 bps (Prior Close – $100.00)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to roughly .125% of your loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

Economic News: The Core Personal Consumption Expenditure Index, which measures inflation, was reported lower than expectations. Personal Spending and Personal Income were also reported lower than analysts expected. The Personal Savings rate remained steady, showing Americans are still saving their money. New Home Sales surprised to the downside, following the strong Existing Home Sales print yesterday. The New Home Sales miss, combined with the tame inflation data likely helped bond prices this morning.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 22nd, 2009

2009-12-22T09:23:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $99.64
-62 bps (Prior Close – $100.26)

Market Update: Mortgage Backed Security (MBS) pricing is significantly lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .625% of the loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: Existing Home Sales were reported slightly higher than expected and the inventory of unsold homes fell to a 6.5-month supply. Overall, this is a good news, but likely due to the perceived ending of the Homebuyer Tax Credit.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 21st, 2009

2009-12-21T09:03:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.72
-50 bps (Prior Close – $101.22)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from Friday's close. For a consumer, this translates into an upfront fee increase equivalent to .50% of the loan amount in order to obtain the same rate available Friday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: There are no economic reports due out today, but the rest of the week will be filled with reports due out through Thursday. Also, on Wednesday the Treasury Department will announce next week's Treasury auctions, which have added volatility in the past.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 17th, 2009

2009-12-17T16:43:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.50
+59 bps (Prior Close – $100.91)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to more than .50% of the loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

We've had a floating bias since the major price deterioration over the last week. Pricing has improved dramatically and rates/fees should continue to move lower.

Economic News: Initial Jobless Claims rose higher than expected.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 16th, 2009

2009-12-16T16:27:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.91
+6 bps (Prior Close – $100.85)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher today from yesterday's close. For a consumer, this translates into an upfront fee decrease equivalent to .06% of the loan amount in order to obtain the same rate available yesterday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

We've had a floating bias since the major price deterioration over the last week. Pricing hit levels of support yesterday and rates/fees should continue to move lower.

Economic News: Consumer Price Index (CPI) was reported in line with expectations, signaling that inflation remains low for the moment. Housing Starts for November were also in line with estimates while Building Permits, which are a leading indicator of housing construction, reached the highest level seen in the past year.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 15th, 2009

2009-12-15T16:34:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.84
-25 bps (Prior Close – $101.21)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .25% of the loan amount in order to obtain the same rate available yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

We've had a floating bias since the major price deterioration over the last week. Pricing hit levels of support today so we should see a move down in rates unless inflationary news continues to spook the market.

Economic News: Producer Price Index, which measures wholesale inflation, came in significantly higher than expected. The Empire State Index of manufacturing in New York showed the largest monthly decline on record in December. Industrial Production came in a bit higher than expected, rising in November by the most in three months.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 14th, 2009

2009-12-14T15:04:00.001-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.09
-12 bps (Prior Close – $101.21)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from Friday's close. For a consumer, this translates into an upfront fee increase equivalent to .125% of the loan amount in order to obtain the same rate available on Friday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

Economic News: There are no economic reports due for release today, but the rest of the week is loaded up with reports, including the Fed Meeting and Monetary Policy Statement on Wednesday.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 11th, 2009

2009-12-11T06:48:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.09
-22 bps (Prior Close – $101.31)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .25% of the loan amount in order to obtain the same rate available on yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

The market had significant deterioration this week. Treasury auctions are flooding the market with supply, so we are taking a locking approach to all new transactions.

Economic News: Retail Sales came in much higher than expected.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 10th, 2009

2009-12-10T08:22:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.59
-28 bps (Prior Close – $101.87)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .25% of the loan amount in order to obtain the same rate available on yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

The market had significant deterioration yesterday, which caused us to lock our clients mid-day. Treasury auctions are flooding the market with supply, so we are taking a locking approach to all new transactions.

Economic News: Initial Jobless Claims came in worse than expected at 474,000 versus 455,000 estimated. Continuing Jobless Claims fell to the lowest level since February.

Recommendation: LOCK

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 9th, 2009

2009-12-09T08:23:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.91
-12 bps (Prior Close – $102.03)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. For a consumer, this translates into an upfront fee increase equivalent to .125% of the loan amount in order to obtain the same rate available on yesterday for a home loan. A decrease in bond prices causes home loan rates and/or fees to increase.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 8th, 2009

2009-12-08T07:56:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $102.12
+31 bps (Prior Close – $101.81)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. Yesterday, Federal Reserve Chairman Ben Bernanke said interest rates and inflation will remain low, and the economic recovery faces “formidable headwinds.” Bernanke's speech gave investors enough uncertainty to pull money from Stocks, Gold and Oil thus parking their money in Bonds. From Friday, MBS have increased 59 bps in price. For a consumer, this translates into an upfront fee reduction equivalent to .50% of the loan amount in order to obtain the same rate available on Friday for a home loan. An increase in bond prices causes home loan rates and/or fees to decrease.

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Dec 7th, 2009

2009-12-07T10:40:00.000-08:00

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.

FLOAT or LOCK? Phoenix Home Mortgage Update and Recommendation - Dec 4th, 2009

2009-12-04T07:51:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.28
-53 bps (Prior Close – $101.81)

Market Update: Mortgage Backed Security (MBS) pricing is significantly lower today from yesterday's close. Bond prices fell this morning after a very unexpected Jobs Report was released for the month of November. A decline in bond prices causes home loan rates to increase. We've mentioned the market looks very overbought in the last several weeks and a sharp decline in prices weren't much of a surprise. From the market highs, MBS have lost over 125 bps. For a consumer, this translates into an additional cost of 1.25% to obtain the same rate available on Monday for a home loan.

Economic News: The Labor Department reported that only 11,000 jobs were lost in November, far fewer than the 125,000 job losses that were expected. There was also more good news for the U.S. when the Unemployment Rate improved to 10.0%, down from last month's reading of 10.2%.

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Dec 3rd, 2009

2009-12-03T16:04:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.81
-25 bps (Prior Close – $102.06)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. Bond prices dropped continuing to decline rapidly. A decline in bond prices causes home loan rates to increase.

Economic News: Initial Jobless Claims were reported below expectations and at the lowest level in 14 months. Continuing Claims, however, are on the rise. The rise in Continuing Claims is more probably due to the unemployment claims extension that was recently passed.

Recommendation: LOCK

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Dec 2nd, 2009

2009-12-02T10:07:00.000-08:00

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.

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

2009-12-01T08:10:00.000-08:00

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 30th, 2009

2009-11-30T14:21:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $102.62
+12 bps (Prior Close – $102.50)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from Friday's close. Bonds are higher from last week's news that the country of Dubai needed extra time to make their debt payments. Nervous investors rushed into the safe-haven of Treasuries and Mortgage Backed Securities.

Economic News: The infamous "Black Friday" shopping day came and went and the early numbers show the shopping traffic is up, but the dollars spent per shopper may be down. I asked my 10-year old daughter why she thought it was called "Black Friday" and she said, "Because we have to get up to go shopping when it's still dark out". Very logical. This Thursday brings the announcement of the next round of Treasury auctions. The auctions include longer term maturities, such as 10- and 30-years which compete with Mortgage Bonds, so this will be especially important to watch.

Recommendation: FLOAT

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 24th, 2009

2009-11-24T11:08:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $102.22
+22 bps (Prior Close – $102.00)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. Bonds (including MBS) are benefiting from the carry trade, where investors borrow money at a low rate then leverage that money into high yielding investments.

Economic News: Preliminary Gross Domestic Product (GDP) reading for the 3rd Quarter was reported in line with expectations, while Consumer Confidence was reported slightly better than expected. Also, the Federal Housing Finance Agency reported a slight rise in U.S. home prices in the 3rd quarter. The Phoenix-Mesa-Scottsdale area seems to be leveling off, showing only a -5.50% drop. Click here to view the full report.

Recommendation: FLOAT

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 23th, 2009

2009-11-23T08:12:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.78
+0 bps (Prior Close – $101.78)

Market Update: Mortgage Backed Security (MBS) pricing is unchanged today from Friday's close. The Stock market is showing very nice gains this morning and this will probably limit the potential for lower home loan rates.

Economic News: Existing home sales were reported much higher today, beating analysts expectations. The inventory of unsold homes also hit it's lowest level in more than 2 years. These reports are good signs for the current housing market.

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 20th, 2009

2009-11-20T09:29:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.78
+12 bps (Prior Close – $101.66)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. Even though prices are slightly higher, we are still recommending a locking bias. We feel there is significantly more risk to float versus locking. A decrease in Bond prices will result in higher home financing rates for borrowers.

Economic News: There are no economic reports due for release today. The Federal Reserve purchased $16 Billion in MBS last week, bringing the total to $1.023 Trillion out of the $1.25 Trillion allotted for the program. The MBS purchase program is scheduled to end in the first quarter of 2010.

Recommendation: LOCK

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.

On another note, I just wanted to wish my daughter, Kelli Krushinsky, a Happy 10th Birthday.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 19th, 2009

2009-11-19T11:46:00.001-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.66
-3 bps (Prior Close – $101.69)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. Once again, we are still recommending a locking bias as there is significantly more risk to float versus locking. A decrease in Bond prices will result in higher home financing rates for borrowers.

Economic News: Initial Jobless Claims met expectations, and Continuing Jobless Claims fell by 39,000. The drop is likely due to benefits expiring, rather than people finding jobs. The Treasury Department also announced next week's auctions will bring $44 Billion in 2-year Notes, $42 Billion in 5-year Notes, and $32 Billion in 7-year Notes. Not bad, only $118 Billion for two weeks.

Recommendation: LOCK

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 18th, 2009

2009-11-18T11:47:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.66
-9 bps (Prior Close – $101.75)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. Once again MBS prices look to be poised to go lower and there is significantly more risk to float versus locking. A decrease in Bond prices will result in higher home financing rates for borrowers.

Economic News: Consumer Price Index, which measures consumer inflation, showed some signs of inflation at the consumer level. Also in the news, Housing Starts and Building Permits came in weaker than expected.

Recommendation: LOCK

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.

FLOAT OR LOCK? Daily Market Update and Recommendation - Nov 17th, 2009

2009-11-17T09:24:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.91
+3 bps (Prior Close – $101.88)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher today from yesterday's close. From a technical analysis stand-point, MBS prices look to be at the top of the current trading range and there is significantly more risk to float versus locking. A decrease in Bond prices will result in higher home financing rates for borrowers.

Economic News: Producer Price Index for October, which measures wholesale inflation, was reported lower than expected. This is good news for Bonds and indicates there is no fear of inflation currently. Also in the news, Capacity Utilization and Industrial Production were reported essentially in line with expectations.

Recommendation: LOCK

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.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Nov 16th, 2009

2009-11-16T09:02:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.88
+12 bps (Prior Close – $101.76)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from Friday's close. From a technical analysis stand-point, MBS prices look to be at the top of the current trading range. A drop in Bond prices will result in higher home financing rates for borrowers.

Economic News: October Retails Sales were weak overall, but higher auto sales helped the headline number. Today, Fed Chairman Ben Bernanke will be speaking on the economy. There could be significant volatility in the Stock and Bond markets depending on Bernanke's statements about short-term interest rates and eventually removing economic stimulus.

Recommendation: LOCK

To take advantage of today's low home prices and attractive mortgage rates, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

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.

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

2009-11-13T12:26:00.000-08:00

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 david.krushinsky@wjbradley.com.

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.

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

2009-11-12T10:19:00.000-08:00

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 david.krushinsky@wjbradley.com.

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.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 10th, 2009 - FLOAT or LOCK?

2009-11-10T08:14:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.31
+22 bps (Prior Close – $101.09)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. The Stock market is coming under some pressure today from the recent 2-day rally and Bonds will likely be the beneficiary. With Bond prices increasing, this lowers home mortgage interest rates for borrowers.

Economic News: There are no economic reports today but there is plenty of supply hitting the market from the Treasury auctions announced last week. Most of the recent Treasury auctions have been well received, with plenty of foreign participation. For the time being, this has helped keep long-term interest rates at their current levels. How long this support continues remains to be seen.

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 david.krushinsky@wjbradley.com.

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.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 9th, 2009 - FLOAT or LOCK?

2009-11-09T10:02:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.41
+12 bps (Prior Close – $101.29)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from Friday's close. With Bond prices increasing, this lowers mortgage interest rates for borrowers financing a home.

Economic News: There are no economic reports today but there is plenty of supply hitting the market from the Treasury auctions announced last week. This added supply to the market could weigh on Bond prices.

Recommendation: FLOAT

For information on home financing, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan or refinancing, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 6th, 2009 - FLOAT or LOCK?

2009-11-06T13:41:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.28
+22 bps (Prior Close – $101.06)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. MBS prices are up on the day which drives home mortgage interest rates lower.

Economic News: Some volatility today, as the market digests worse than expected Unemployment data. Non-farm Payrolls came in at -190,000 vs. the expected -175,000. The Unemployment Rate jumped to 10.2% from 9.8%, well above the 9.9% forecast by economists. Economic data like this will certainly have many expecting rates to stay lower, longer.

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

Recommendation: FLOAT

For information on home financing, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan or refinancing, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 5th, 2009 - FLOAT or LOCK?

2009-11-05T11:43:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.09
+21 bps (Prior Close – $100.88)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. Yesterday, the Federal Reserve issued its Policy Statement but there with no real surprises. MBS prices are up on the day which drives home mortgage interest rates lower.

Economic News: Productivity came in much higher than expected at 9.5% vs. the 6.5% increase estimated. Initial Jobless Claims posted 512,000 vs. the 522,000 expected. The Stock market is rallying again today on this data and a follow-through on yesterday's rally. Tomorrow's Jobs Report will probably indicate continued weakness in the labor market, with the unemployment rate likely exceeding 10%.

Recommendation: FLOAT

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 4th, 2009 - FLOAT or LOCK?

2009-11-04T08:28:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.78
-3 bps (Prior Close – $100.81)

Market Update: Mortgage Backed Security (MBS) pricing opened nearly unchanged today from yesterday's close. Traders are anxiously awaiting the statement being released today from the Federal Reserve on interest rates and current Policy Statement. With MBS prices flat, home mortgage interest rates remain unchanged. Today's trading could be especially volatile so we're taking the conservative approach and recommending protecting your interest rate.

Economic News: The House of Representatives approved legislation to extend and expand the $8,000 tax credit for first time homebuyers. The tax credit is not a done deal, however, a bill may reach President Obama for his signature by the end of this week. Also in the news, the Treasury announced this morning $81 Billion in Treasuries will be auctioned off next week. This will probably drag MBS prices lower, since MBS compete with Treasuries for investment dollars.

Recommendation: LOCK

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 3rd, 2009 - FLOAT or LOCK?

2009-11-03T07:54:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.81
-13 bps (Prior Close – $100.94)

Market Update: Mortgage Backed Security (MBS) pricing opened lower today. Bond prices are currently trading above key technical support levels. With MBS prices moving lower, home mortgage interest rates move higher.

Economic News: There are no economic reports being released today. Although, the Federal Reserve begins its 2-day Federal Open Market Committee meeting this morning. The Fed will release a public statement tomorrow afternoon on their assessment of the economy. The markets will look to see if the Fed mentions when they will begin removing the accommodative policy and begin to hike rates.

Recommendation: FLOAT

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Nov 2nd, 2009 - FLOAT or LOCK?

2009-11-02T07:58:00.000-08:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.09
-9 bps (Prior Close – $101.18)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from Fridays close. Bonds are taking a little breather today as Stocks are higher on positive economic data. With MBS prices moving lower, Phoenix home mortgage interest rates move higher.

Economic News: The Institute of Supply Manager's Manufacturing Index rose to 55.7 versus expectations of 53.0. Within the report was an improved reading on employment, suggesting businesses in the manufacturing sector may be hiring. There are several important events this week, including the Fed Meeting and Monetary Policy Statement on Wednesday, the Jobs Report with unemployment rate data on Friday, and an expected final vote on the extension of the first-time homebuyer tax credit.

Recommendation: FLOAT

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 30th, 2009 - FLOAT or LOCK?

2009-10-30T10:12:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.12
+34 bps (Prior Close – $100.78)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterdays close. Bonds are higher today as the Stock market is in free-fall. The Treasury Department's record $123 Billion in auctions are completed, which is also giving Bonds a lift today. With MBS prices moving higher, home mortgage interest rates move lower.

Economic News: Personal Income was reported unchanged in September, while Consumer Spending fell 0.5%. Also in the news, some encouraging reports came from release of the Chicago PMI and the Michigan Consumer Sentiment, which both came in better than expectations with mildly positive numbers.

Recommendation: FLOAT

For information on purchasing or refinancing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

The decision to float or lock your interest rate can save, or cost, you thousands of dollars in upfront fees. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 29th, 2009 - FLOAT or LOCK?

2009-10-29T08:45:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.91
-25 bps (Prior Close – $101.16)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from the previous days close. Bond prices are likely lower today in anticipation of poor foreign participation results for the $31 Billion 7-year Treasury auction. With MBS prices moving lower, home mortgage interest rates move higher.

Economic News: Gross Domestic Product rose higher than estimated for the first gain in a year and the strongest reading in two years. Technically, this signals an end to the current economic recession. However, that number is likely inflated by the recent "Cash for Clunkers" and $8,000 first-time homebuyer programs. Also today, Initial Jobless Claims were reported "less bad" than expected, and Continuing Jobless Claims fell to a 7-month low. The "less bad" number reported is probably due to unemployment benefits expiring as opposed to people actually finding jobs.

Recommendation: FLOATING CAUTIOUSLY

For information on home loan refinancing or purchasing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

In order to receive the best home loan rates, knowing when to float or lock your interest rate is crucial. Our recommendation doesn't apply to all scenarios, so if you have questions about your Phoenix home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 27th, 2009 - FLOAT or LOCK?

2009-10-27T09:29:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.66
+41 bps (Prior Close – $100.25)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterdays close. MBS prices are up after the announcement of a well-received auction of $44 Billion in 2-year Treasury Notes. With MBS prices moving higher today, Phoenix home mortgage interest rates move lower.

Economic News: Consumer Confidence came in worse than expected at 47.7 vs. 53.5 estimated by economists. The weak labor market is undoubtedly the cause for lower consumer confidence. Also in the news, the Senate could be voting as early as tonight to extend the $8,000 First Time Homebuyer tax credit. If this bill is passed, it will then go to the House on Thursday for approval.

Recommendation: FLOAT

For information on home loan refinancing or purchasing your home, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

In order to receive the best home loan rates, knowing when to float or lock your interest rate is crucial. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 26th, 2009 - FLOAT or LOCK?

2009-10-26T09:25:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.50
-9 bps (Prior Close – $100.59)

Market Update: Mortgage Backed Security (MBS) pricing is lower today, as Bonds continue to follow through from Friday's weakness. The Fed’s $300 Billion Treasury buyback program comes to an end this Thursday. Without the Fed buying Treasuries, which provides demand for the massive supply hitting the market, rates will continue to move higher. This also causes home mortgage interest rates to move higher, as investors will demand a higher return for added risk to their investment dollar.

Economic News: There are no economic reports due to be released today, but later this week we'll have reports on housing, consumer confidence, economic growth, inflation and the job market. In addition, this will be another week of massive Treasury auctions.

Recommendation: LOCK

For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

When getting a new mortgage on your home, it's critical to consider when to float or lock your interest rate. Our recommendation doesn't apply to all scenarios, so if you have questions about your home loan, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 23rd, 2009 - FLOAT or LOCK?

2009-10-23T13:42:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.78
-19 bps (Prior Close – $100.59)

Market Update: Once again Mortgage Backed Security (MBS) pricing is lower today after yesterday's close. Selling pressure is weighing on the Bond market, as central banks indicate that inflation is coming and it may be time to begin global rate hikes. With all of the deficit spending, bail-outs, tax credits and government intervention the fear of inflation is growing everyday. This isn't going to be easy and may prove to be even more difficult than the economic recovery. Watch for continued chatter of rate hikes to put downward pressure on MBS prices. With MBS prices moving lower, home mortgage interest rates move higher.

Economic News: Today provided some encouraging news on the national housing front. Existing Home Sales came in better than expected, at 5.57M vs. the expectation of 5.35M. Inventory levels shrunk to a 7.8 month supply, down from a recent high of 10.1 in April. This is likely due to first time homebuyers who would have purchased in 2010 purchasing now, due to the expiring first time homebuyer tax credit. The $8,000 tax credit is set to expire on November 30th, 2009.

Recommendation: LOCK

For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

When getting a new mortgage on your Phoenix home, it's critical to consider when to float or lock your interest rate. Our recommendation doesn't apply to everyone, so if you have questions, please contact us directly.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 22nd, 2009 - FLOAT or LOCK?

2009-10-22T08:41:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.72
-9 bps (Prior Close – $100.81)

Market Update: Mortgage Backed Security (MBS) pricing is starting the day lower today after yesterday's close. Selling pressure was provided by the massive amount of debt being auctioned by the Treasury Department. The Treasury announced that it would auction $123 Billion in Treasury Bonds, made up of 2,5 and 7 year Notes, along with some 5 year TIPS (Treasury Inflation Protected Securities). This means our government needs to borrow $123B, and that just gets us through two weeks. These are without a doubt, unprecedented times. With MBS prices moving slightly lower, Phoenix home financing interest rates move higher.

Economic News: Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of current unemployment benefits expiring, without beneficiaries having been able to find jobs.

Recommendation: FLOAT

For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 21st, 2009 - FLOAT or LOCK?

2009-10-21T10:48:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.75
-12 bps (Prior Close – $100.87)

Market Update: Mortgage Backed Security (MBS) pricing is starting the day lower today after yesterday's close. Selling pressure was provided by worldwide chatter on tightening monetary policy and seemingly improving earnings in the financial sector. Also weighing on rates is the realization that the FED will cease its $300B Treasury bond buying operations at month-end. The FEDs purchase of Treasury Securities has had some impact on Bond yields, influencing rates throughout the globe. The FED will continue to manipulate the mortgage bond market though, at least for now. With MBS prices moving slightly lower, home financing interest rates move higher.

Economic News: There are no economic reports due for release today. MBS are likely taking direction from inflationary fears and the ending of FED intervention in the Bond markets.

Recommendation: FLOAT

For information on home loan refinancing or purchasing your home contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 20th, 2009 - FLOAT or LOCK?

2009-10-20T11:00:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.00
+21 bps (Prior Close – $100.79)

Market Update: Mortgage Backed Security (MBS) pricing is starting the day higher today after yesterday's close. Bonds pricing is up on the release of weaker housing numbers and tame wholesale inflation. With Bond prices moving slightly higher, home mortgage interest rates move lower.

Economic News: Housing Starts and Building Permits both came in under analysts expectations. Also in the news, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. Oil and natural gas have had significant price increases lately, so we'll have to watch wholesale inflation closely.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

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

2009-10-13T08:56:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.12
+22 bps (Prior Close – $100.90)

Market Update: Mortgage Backed Security (MBS) pricing is starting the day higher today after Friday's sharp decline. Bonds will look to take direction from the Stock market today, as there are no economic reports being released. With Bond prices moving slightly higher, home mortgage interest rates will move lower.

Economic News: There are no economic reports being released today.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 9th, 2009 - FLOAT or LOCK?

2009-10-09T10:06:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.34
-47 bps (Prior Close – $101.81)

Market Update: Mortgage Backed Security (MBS) pricing is significantly lower today from yesterday's close. Our recommendation all week has been a locking-bias, as MBS have shown technical signs of being overbought. Yesterday's 30-year Treasury Bond auction was so poorly received, it has caused selling pressure to carry forward to today's trading. With Bond prices heading lower, this causes home mortgage interest rates to move higher.

Economic News: There is no economic news for release today. The Bond market will be closed Monday in observance of Columbus Day.

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 8th, 2009 - FLOAT or LOCK?

2009-10-08T11:43:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.75
-15 bps (Prior Close – $101.90)

Market Update: Mortgage Backed Security (MBS) pricing is lower today from yesterday's close. MBS have been showing technical signs of being overbought. Prices have been unable to make a convincing move higher, thanks to recent Treasury auctions and a continued Stock market improvement. With Bond prices heading lower, this drives home mortgage interest rates to higher.

Economic News: Weekly Jobless Claims came in lower than expected, although not by much. The Stock market is in rally mode again today on strong earnings, a weakening dollar, and not-so-bad Initial Claims. Yesterday's 10-year Treasury Note auction was strong, but today's 30-year Bond showing was not so great, getting graded a "C".

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 7th, 2009 - FLOAT or LOCK?

2009-10-07T09:35:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.78
+16 bps (Prior Close – $101.62)

Market Update: Mortgage Backed Security (MBS) pricing is up today from yesterday's close due to a weak stock market, a strong dollar, and the FED buying up bonds ahead of the 10-year Treasury auction. With Bond prices heading higher, this causes home mortgage interest rates to move lower.

Economic News: Additional Bond supply is hitting the market today, as the Treasury will auction off $20 Billion in 10-year Notes. Yesterday's 3-year Note auction was not received very well, so Traders will be watching today's auction for signs of buying.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 6th, 2009 - FLOAT or LOCK?

2009-10-06T09:30:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.62
-9 bps (Prior Close – $101.71)

Market Update: Mortgage Backed Security (MBS) pricing is lower this morning from yesterday's closing price. Like yesterday's update, Bond prices are still showing technical signs of heading lower, which would make home loan interest rates move higher.

Economic News: The Reserve Bank of Australia unexpectedly raised the country's benchmark interest rate, stating they felt it was safe to start cutting back on economic stimulus. This would normally be good news for Bonds because raising interest rates keeps inflation low. However, this caused pressure on the dollar, raising commodity prices and the Stock market.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 5th, 2009 - FLOAT or LOCK?

2009-10-05T13:00:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.72
+3 bps (Prior Close – $101.69)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher from Friday's closing price. Bond prices are showing technical signs of being overbought and will likely start to head lower, which would make interest rates move higher.

Economic News: There will be another round of Treasury auctions this week, and as we have seen in the past, this creates volatility in the markets. Also, former Fed Chairman Alan Greenspan stated he believes unemployment will rise beyond 10%, he also advised against a second massive stimulus package for fear of the long-term negative consequences.

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 2nd, 2009 - FLOAT or LOCK?

2009-10-02T09:18:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.69
-6 bps (Prior Close – $101.75)

Market Update: Mortgage Backed Security (MBS) pricing started out the morning with big gains but have since moved slightly lower from yesterday's closing price. Currently prices are showing technical trading signs of a reversal, which would cause interest rates to move higher.

Economic News: The Labor Department reported that 263,000 jobs were lost in September, which is quite a bit worse than what economist were expecting. In addition, the unemployment rate moved up to 9.8%. This news would normally be good for Bonds and bad for Stocks.

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Oct 1st, 2009 - FLOAT or LOCK?

2009-10-01T09:00:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.75
+50 bps (Prior Close – $101.25)

Market Update: Mortgage Backed Security (MBS) pricing is higher today from yesterday's close. The Stock market is currently in the red and worse than expected employment data was released earlier today.

Economic News: Initial Jobless Claims increased more than expected, indicating a continued decline in the labor market. The ISM Manufacturing Index also came in a little worse than expected. There was some good news released, as Pending Home Sales were reported far above expectations and Personal Spending for August rose at its fastest monthly pace in almost 8 years. The increase in Personal Spending is, in large part, due to the "Cash for Clunkers" program.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 30th, 2009 - FLOAT or LOCK?

2009-09-30T07:09:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.34
+0 bps (Prior Close – $101.34)

Market Update: Mortgage Backed Security (MBS) pricing is unchanged today from yesterday's close. There were some big reports issued today and the Stock market is currently in the red. We don't think there will be a significant amount of volatility until Friday, when the Jobs Report is released.

Economic News: The monthly ADP report was released this morning showing higher losses in the job market than expected. Also in the news, the Chicago Purchasing Managers Index was released significantly lower than expected. In other economic headlines this morning, the Final Gross Domestic Product for the second quarter was revised for the better.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 29th, 2009 - FLOAT or LOCK?

2009-09-29T08:22:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.38
+3 bps (Prior Close – $101.35)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher today from yesterday's close.

Economic News: Consumer Confidence for September was reported at 53.1 versus expectations of 57.0. This report is quite a bit lower than economist were expecting and shows the consumer isn't as optimistic, as Wall Street, about the economy. On the news, Stocks reversed lower, helping MBS improve from their worst levels today. Also today, the Case-Shiller Home Price Index came in better than expectations. The index showed 18 out of 20 large cities had month-over-month price improvements. This may indicate that that the worst of the housing price declines are behind us.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 28th, 2009 - FLOAT or LOCK?

2009-09-28T08:52:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.16
+3 bps (Prior Close – $101.13)

Market Update: Mortgage Backed Security (MBS) pricing is currently slightly higher today from Friday's close.

Economic News: This will be a very active week in the markets and mortgage rates. The most important day will be Friday due to the employment report being released, but Tuesday's and Thursday's data can also fairly heavily influence mortgage rates. There is nothing of importance scheduled for release today, so look for the Stock market to influence bond trading and mortgage rates.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 25th, 2009 - FLOAT or LOCK?

2009-09-25T09:46:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.03
+9 bps (Prior Close – $100.94)

Market Update: Mortgage Backed Security (MBS) pricing is currently higher today from yesterday's close. The market opened slightly lower but has been improving as Stocks are declining.

Economic News: Durable Goods Orders for August unexpectedly dropped 2.4% for the largest decline since January. Durables Goods are defined as orders for goods that last 3 years or more, like flat screen TV's, furniture and appliances. Additionally, New Home Sales for August were reported only slightly lower than expectations. However, the report showed some signs of an improving market as the inventory of unsold homes dropped to its lowest level since January 2007. This report is likely due to less construction from new home builders as opposed to increased demand.

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 24th, 2009 - FLOAT or LOCK?

2009-09-24T16:12:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.94
+28 bps (Prior Close – $100.66)

Market Update: Mortgage Backed Security (MBS) pricing is higher today.

Economic News: Initial Jobless Claims came in below expectations. Bonds worsened initially, but moved back to positive territory. Existing Home Sales were also reported less than expected. However, the inventory of unsold homes fell to the lowest inventory level since April 2007.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

Phoenix Home Mortgage Interest Rate Update and Recommendation Sept 23rd, 2009 - FLOAT or LOCK?

2009-09-23T08:19:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.50
-6 bps (Prior Close – $100.56)

Market Update: Mortgage Backed Security (MBS) pricing is slightly lower this morning from yesterday's close.

Economic News: There are no economic reports due for release today, but the Fed will end its meeting this afternoon with the release of its Monetary Policy Statement. We don't think the Fed will change the Fed Funds Rate, but the markets will be looking for comments about the bottoming of the recession and the continued MBS purchase program.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 22nd, 2009

2009-09-22T08:48:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.56
+9 bps (Prior Close – $100.47)

Market Update: Mortgage Backed Security (MBS) pricing is slightly higher this morning after yesterday afternoon's sell off. Bonds will once again take direction from the Stock market today.

Economic News: There are no economic reports due for release today. The Federal Reserve starts it's 2-day meeting today with the official FOMC statement coming on Wednesday afternoon about interest rates. The results for the $43 Billion 2-Year Treasury Note auction will also be released this afternoon.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 21st, 2009

2009-09-21T09:52:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.66
+22 bps (Prior Close – $100.44)

Market Update: Mortgage Backed Security (MBS) pricing is higher this morning after a very volatile week. Bonds will likely take direction from the Stock market today. Bonds are higher this morning after a nice run-up in the equity markets, which is resulting in some profit taking from traders.

Economic News: There are no economic reports due for release today. However, this week will bring record size Treasury auctions beginning on Tuesday afternoon. Also this week, the Federal Reserve starts it's 2-day meeting tomorrow with their statement coming on Wednesday afternoon.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 18th, 2009

2009-09-18T10:53:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.56
-34 bps (Prior Close – $100.90)

Market Update: Mortgage Backed Security (MBS) pricing is much lower this morning after yesterday's nice rally. This is largely due to profit taking and strength in the Stock market. Stocks could be volatile today for a number of reasons, including expiring Stock index futures and light trading (which makes the market have exaggerated moves) due to Rosh Hashanah. This also means we may see high volatility in the Bond market as well.

Economic News: There are no economic reports due for release today.

Recommendation: LOCK

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 17th, 2009

2009-09-17T09:13:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.62
+22 bps (Prior Close – $100.40)

Market Update: Mortgage Backed Security (MBS) pricing is higher this morning from yesterday's close. Next weeks Treasury auction will be announced today. The recent auctions have been well received so this may help support Bond prices today.

Economic News: Signals of the recession bottoming out continue as Housing Starts for August came in at the best level since last November. New Building Permits were reported a bit lower than expected, but overall the report suggests that the worst in the housing market may be behind us. Initial Jobless Claims were reported lower than Wall Street expected. Also today, the Philly Fed Index surged to 14.1 but still shows sign of business pullback in the Mid-Atlantic region.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 16th, 2009

2009-09-16T10:26:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.59
+12 bps (Prior Close – $100.47)

Market Update: Mortgage Backed Security (MBS) pricing is higher this morning from yesterday's close. High volatility continues in the Bond market this morning as the economic reports started rolling in. It is now "official" the recession is over; Bernanke blessed it yesterday, Warren Buffet this morning.

Economic News: Consumer Price Index was reported slightly higher than expected this morning. After stripping out volatile food and energy, however, the Core CPI was in line with expectations at an increase of 1.4% year over year. Capacity Utilization and Industrial Production both came in a little hotter than expected by Wall Street.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Phoenix Home Mortgage Interest Rate Update and Recommendation - Sept 15th, 2009

2009-09-15T08:42:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.44
-6 bps (Prior Close – $100.50)

Market Update: Mortgage Backed Security (MBS) pricing is lower this morning from the yesterday afternoon sell-off in the Bond market.

Economic News: Retail sales jumped in August more than expected, even excluding the increase in auto sales due to the Cash for Clunkers program. In fact, the increase was the largest month-over-month increase in 3 ½ years. The Producer Price Index came in more than double expectations which is prompting concerns of wholesale inflation. A better gauge on consumer inflation will be released tomorrow, when the Consumer Price Index is released. Additionally, the New York State Manufacturing Index reached its highest level since late 2007.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 14th, 2009

2009-09-14T09:41:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.75
-3 bps (Prior Close – $100.78)

Market Update: Mortgage Backed Security (MBS) pricing is slightly lower this morning from Friday. President Obama imposed tariffs on Chinese tires, then the world’s fastest growing major economy said it is investigating U.S. sales of chicken and auto products. As a result, there is some concern that China could sell some of their Mortgage Bonds, which would cause home loan rates to increase.

Economic News: There are no scheduled economic reports due to be released today so Bonds will take direction from Stocks.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 11th, 2009

2009-09-11T09:33:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.06
+31 bps (Prior Close – $100.75)

Market Update: Mortgage Backed Security (MBS) pricing is higher this morning from yesterday. The Treasury auctions this week showed good demand for bonds and helped Mortgage Bonds continue their uptrend in price, lower in rate.

Economic News: The consumer sentiment report came in more positive than expected with a reading of 71.8 and the consensus was for 67.8. This would be expected to be a negative for bonds and mortgage pricing. However, even 15 minutes after the report came out, Treasury and MBS markets have not moved on the news.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 10th, 2009

2009-09-10T09:44:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.97
+28 bps (Prior Close – $100.69)

Market Update: The Mortgage Backed Security (MBS) pricing is higher this morning from yesterday. Yesterday's Treasury auction showed good foreign participation and helped MBS close higher.

Economic News: Initial Jobless Claims were reported better than expected, but still at a high level. Continuing Claims, which represent the number of people still receiving benefits, dropped a bit but this is probably due to benefits expiring rather than people finding new jobs.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 9th, 2009

2009-09-09T07:44:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.59
+3 bps (Prior Close – $100.56)

Market Update: The Mortgage Backed Security (MBS) pricing is nearly unchanged this morning from yesterday. Yesterday's Treasury auction was well received by traders and helped MBS close slightly higher.

Economic News: The Fed Beige Book findings will be released this afternoon and could have an impact on the markets.

Recommendation: FLOAT

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600.

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 8th, 2009

2009-09-08T07:12:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.66
+16 bps (Prior Close – $100.50)

Market Update: The Mortgage Backed Security (MBS) pricing is moving higher this morning after a long holiday weekend. Stocks initially opened higher this morning but have since pulled back, strengthening Bond prices.

Economic News: There are no economic reports being released today. But the action promises to pick up today with the start of the three big Treasury auctions. A total of $70B in Treasuries will be auctioned this week.

Recommendation: FLOAT

FLOAT or LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 4th, 2009

2009-09-04T07:29:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.59
-16 bps (Prior Close – $100.75)

Market Update: The Mortgage Backed Security (MBS) pricing is moving lower this morning from yesterday. The Jobs Report for August has Stock traders feeling very good this morning. The inflation component of the Jobs Report also shows low inflation which is good news for bonds as well. The initial reaction was as you would expect, a lot of volatility.

Economic News: 216,000 jobs were lost in August, which is better than the 230,000 job losses that were expected. While this appears to be good news, these numbers are often revised in reports issued in future months. What we do know for sure is that the overall unemployment rate climbed to 9.7% last month, which is more than double what it was two years ago and marks the highest level seen in 26 years.

Recommendation: LOCK

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 3rd, 2009

2009-09-03T08:59:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.75
-12 bps (Prior Close – $100.88)

Market Update: The Mortgage Backed Security (MBS) pricing is lower this morning from yesterday, with strength in Asian markets last night money has started to flow out of Bonds.

Economic News: The Labor Department says the number of unemployed workers filing for jobless benefits fell last week by 4,000 to 570,000, but that was less than the 560,000 figure the market had been expecting. Overall, the report indicates that the labor market is still declining. This comes ahead of tomorrow's official Jobs Report, which is the best measure we have of real-time job creations and losses. ISM services sector hit at 48.4 frm 46.4 in July; generally on target.

Recommendation: LOCK

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 2nd, 2009

2009-09-02T11:41:00.001-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $101.03
+38 bps (Prior Close – $100.66)

Market Update: The Mortgage Backed Security (MBS) pricing is higher this morning from yesterday, thanks in part to the recent pullback in Stocks.

Economic News: The ADP Employment report came in worse than expected showing 298K job losses in the private sector, worse than the 200K expected. Also this morning, Revised Productivity for the 2nd quarter beat expectations and showed the largest gain in nearly six years. This emphasizes that businesses are maximizing output from their current staff. These better efficiency gains help to keep inflation low, which is good for Bonds.

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Sept 1st, 2009

2009-09-01T08:20:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.53
+6 bps (Prior Close – $100.47)

Market Update: The Mortgage Backed Security (MBS) pricing is higher this morning from yesterday's close. MBS are benefiting from nervous stock investors, as September is typically one of the worst trading months of the year.

Economic News: Pending Home Sales rise 3.2% in July versus estimates of a 1.5% increase. The Institute of Supply Management Index also beat estimates coming in at 52.9, better than expectations of 50.2. A reading above 50 indicates expansion, while a reading below 50 indicates contraction, so this is a another positive sign for the manufacturing sector.

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 31st, 2009

2009-08-31T09:49:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.41
+22 bps (Prior Close – $100.19)

Market Update: The Mortgage Backed Security (MBS) pricing is higher this morning from Friday's close. MBS are benefiting from nervous stock investors and some worries from overseas, including sharp declines in China’s Stock market.

Economic News: The manufacturing sector measuring Chicago Purchasing Managers Index (PMI) came in right at 50, quite a bit better than last month. A reading above 50 indicates expansion, while a reading below 50 indicates contraction, so this is a fairly positive sign for the manufacturing sector. Once again manufacturing data beats the estimates; but who is buying?

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 28th, 2009

2009-08-28T09:07:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.12
0 bps (Prior Close – $100.12)

Market Update: The MBS pricing is unchanged this morning from yesterday's close after some initial up and down trading.

Economic News: The Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditure Index, indicated that inflation remained tame last month coming in at 1.4% year-over-year. As part of that report, Personal Income and Spending were both reported inline with expectations.

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 27th, 2009

2009-08-27T08:54:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.19
-12bps (Prior Close – $100.31)

Market Update: The MBS pricing has been pressured lower by a comment from Richmond Fed President, Jeffrey Lacker, suggesting that the Fed may not need to buy the full $1.25 Trillion in Mortgage Backed Securities they have committed to earlier this year.

Economic News: Jobless claims dropped -10K lower showing a filing claim number of 570K, right on the forecasts; last week's claims were revised up 4K to 580K. In other news, revised Gross Domestic Product for the 2nd Quarter came in close to expectations.

Recommendation: LOCK

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 26th, 2009

2009-08-26T09:07:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.31
-3bps (Prior Close – $100.34)

Market Update: The MBS pricing started off trading near unchanged levels today and this comes after yesterday’s late day rally sparked by good results from the 2-year Treasury Note auction. Foreign investors, including foregin central banks, bought up a greater than expected 49.4% of the 2 year offerings.

Economic News: July new home sales; expected to increase 1.5%, as reported sales jumped 9.6% to 433K against 390K expected. June sales were revised higher also, from 384K units to 395K units (annualized). The increase is the largest month over month increase since Feb 2005. There is a 7.5 month supply against an 8.5 month supply in June.

Recommendation: FLOAT with Caution

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 25th, 2009

2009-08-25T08:30:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.06
-9bps (Prior Close – $100.15)

Market Update: The MBS pricing started off higher this morning but has since declined as President Obama announced he will re-appoint Ben Bernanke to another four year term as head of the Federal Reserve. His appointment will have to go through the Senate, and there may be some venting but in the end he will get a second term.

Economic News: At 10:00 the Conference Board released its Consumer Confidence Index; expected at 48.0 frm 46.6, it hit at 54.1 from a revised July read to 47.7. All components in the data were better than expected; current conditions and expectations were up from July. The reaction was as one would expect, mortgage prices declined and the DJIA jumped higher. In other news, the housing industry received good news when the Case-Shiller Home Price Index showed home prices rose for the second straight month.

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 24th, 2009

2009-08-21T09:04:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.00
+31bps (Prior Close – $99.69)

Market Update: The MBS pricing started off lower this morning but has since improved as talks of the $8,000 tax credit will likely be extended past the November 30th deadline and may also include buyers who are not first-time homebuyers. The US equity markets are moving higher on the reports that the global recession is coming to an end.

Economic News: No economic reports are due to be released today. There is $109B in supply hitting the Treasury markets this week which will likely add pressure to the interest rate markets.

Recommendation: FLOAT

FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation - Aug 21st, 2009

2009-08-21T08:36:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.00
-31bps (Prior Close – $100.31)

Market Update: The MBS pricing started off higher this morning but has since declined as stocks improved drastically. The US equity markets are moving higher on the better than expected Existing Homes Sales Report. The markets continue with their high levels of volatility.

Economic News: Existing Homes Sales were released today showing an improvement of 7.2% from the previous month at 5.24M versus expectations of 5M. This is the largest improvement since the National Association of Realtors began keeping track in 1999.

Recommendation: LOCK

FLOAT OR LOCK? Daily Market Update and Recommendation - Aug 19th, 2009

2009-08-20T16:12:00.000-07:00

Current Pricing of FNMA 30 Year 4.5% Bond: $100.11
+27bps (Prior Close – $99.84)

Market Update: The MBS pricing started off higher this morning as stocks continue to recover. The US equity markets continue to fall from a much needed correction. The markets continue with their high levels of volatility.

Economic News: No economic reports are due to be released today. Traders are already anticipating tomorrow’s Treasury auction announcement. Recent trends have shown a pattern of mortgage bonds selling off with the Treasury announcements. Other economic data being released tomorrow is the weekly jobless claims, index of leading economic indicators, and the Philadelphia Fed index.

Recommendation: Float

Pinnacle Hill Glendale, AZ - FHA 203k Rehabilitation Loan

2009-07-26T16:30:00.000-07:00

The FHA 203K Rehabilitation Loan was started as a tool to help the revitalization of neighborhoods and communities throughout Glendale, Arizona and the United States. This loan program offers borrowers the resources to rehabilitate their home located in the Pinnacle Hill community in Glendale, AZ that may be in need of limited repairs and/or upgrades without exhausting their savings. This can be used for either the purchase of a fixer-upper or the refinance of a home they currently occupy. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

The FHA 203(k) loan is available to borrowers of all income levels who plan to occupy their house in the Pinnacle Hill area. This loan also opens the door for many Arizona first-time homebuyers and applicants with less than perfect credit, while still allowing for low down payments. Properties eligible for this product include any single family residences, condominiums, manufactured homes, townhouses and properties with one to four units located in the Pinnacle Hill area in Glendale, AZ.

The Streamlined 203(k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The repair costs can be up to $35,000 and there is no minimum requirement. (***Please note that there are also 203(k) loan programs available without a maximum repair cost amount and additional improvements capabilities.)

The following is a list of some of the eligible improvements and/or repairs:

••- Repair/Replacement/Upgrades of roofs, gutters, HVAC systems, plumbing, electrical systems and flooring
••- Minor remodeling of kitchens and bathrooms
••- Purchase and installation of appliances
••- Painting - exterior and interior
••- Weatherization including insulation, weather stripping, storm windows and doors
••- Window and door replacement and exterior wall re-siding
••- Lead based paint stabilization and abatement of lead based paint
••- Repair/Replace/Addition of exterior decks, patios and porches
••- Repair to existing swimming pools up to $1,500
••- Repair/Replacement of septic system and wells
••- Accessibility improvements for persons with disabilities
••- Finishing/remodeling of basements, not including structural repairs

The actual cost of the renovation is based upon the contractors' accepted contracts specifying the scope of work, cost of materials and labor and timeframe. All repairs must be completed by a contractor within 3 months of the closing date. Borrowers are required to have the necessary expertise and experience to perform work. Please feel free to contact the Krushinsky Team at 623-594-7600 for any additional questions related to the FHA 203K Rehabilitation Loan in Pinnacle Hill.

Is This Really Arizona?

2009-07-11T16:44:00.001-07:00

•Desert
•Cactus
•Scorpions
•Rattlesnakes

These are all the things that come to mind when you normally mention the name Arizona. Having been born and raised in Arizona, there are many more things to do here. At the time of writing this article it's 113 degrees outside in Phoenix. This is the time of year to find a nearby lake like Lake Pleasant, Canyon Lake or Saguaro Lake and enjoy some water activities. There is also a newly built water park, Wet-N-Wild, that just opened in July to take the kids to for keeping cool. Another popular activity often referred to as "Arizona's Floating Picnic" is tubing down the Salt River.

During the winter months, you can enjoy skiing at Arizona Snobowl in Flagstaff and Sunrise Park Resort in Greer. These facilities are also open in the summer months for activities such as hiking, mountain biking and just enjoying nature on a scenic lift ride. Oak Creek Canyon and Sedona provide nice weekend getaways for golfers, nature enthusiasts and even power shoppers. Sedona is often referred to as "Red Rock Country" because of the beautiful red-rock monoliths named Coffeepot, Cathedral and Thunder Mountain that surround the city.

A popular local hangout is the newly constructed Westgate, in Glendale, located adjacent to the Arizona Cardinals stadium. Westgate offers activities such as dining, shopping, a fountain park for the kids, and a movie theater.

Known primarily for the "Grand Canyon" this beautiful state has much more to offer for someone looking to purchase a home in Phoenix. With real estate prices in some Phoenix neighborhoods dropping to prices not seen since 1997 and favorable interest rates, now may be the time to take advantage and buy the home you have always dreamed about. First-time homebuyer loan programs and the $8,000 tax credit is also currently available to applicants who qualify.

Appraisal and Property Requirements - FHA Loans

2009-07-06T15:43:00.000-07:00

1: Home Inspections: Borrowers are encouraged to obtain a detailed home inspection of the property. Borrowers should research home inspector's qualifications and designations to ascertain that they feel comfortable with the individual they hire. I recommend asking your Realtor for a referral of a qualified Home Inspector.

2: Repairs and Alterations: Deficiencies, required repairs, alterations and/or required inspections must be reported within the appropriate section of the applicable appraisal reporting form. (See Mortgagee Letter 2005-48 and 2005-34)

Required Repairs: Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants, A.K.A. the three S's:

Safety: protect the health and safety of the occupants
Security: protect the security of the property (security for the FHA insured mortgage.)
Soundness: correct physical deficiencies or conditions affecting structural integrity

Properties in Poor Condition: If the subject property is in such poor condition that it may be cost prohibitive or impractical to bring it up to FHA's minimum property requirements, the appraiser should recommend rejecting the property and contact the Lender before continuing with the assignment. If continuing:

Complete the appraisal on an "AS IS" basis, clearly marking the report as recommended for rejection for Section 203(b) and provide reasons for the rejection;
Provide a list of all major deficiencies and state that the list should not be considered all-inclusive. Additional items may be required before acceptable for FHA Insurance; and
Provide photographs of deficiencies to support recommended action.

3. Code Enforcement for Existing Properties: As stated in HUD Handbook 4150.2 HUD has neither the authority nor responsibility for enforcing code. This rests with the local municipalities.

4. Clearing Conditions on Existing Homes

All repair items required by the appraiser or underwriter must be inspected and the clearance documented.

A professionally licensed, bonded, registered engineer, licensed home inspector or appropriately registered/licensed trades person, as applicable, must provide documentation that all deficiencies have been acceptably corrected upon completion of repairs. "As applicable" has been determined to mean any individual who the lender deems to be qualified, which might be the appraiser.

Professionals as defined above may use their company's forms and letterhead to make the certifications. Appraisers and Compliance Inspectors are to use the Compliance Inspection Report, form HUD-92051. The individual signing Section II must be the person who actually performed the inspection. Section III or IV, as appropriate, is to be signed by the Direct Endorsement Underwriter.

Mortgagee Certification: When a Mortgagee Certification is used to clear minor conditions the HUD-92051 is not required.

Mechanical Certifications: Please see: Heating & Electrical section of this manual.

5. Refinances: Standard refinances require a complete appraisal with deficiencies and repair conditions reported. Although HUD does not require completion of the repairs on a streamline refinance, except lead-based paint repairs, the lender may require completion of repairs. A streamline refinance may be insured with or without an appraisal. Please see:Handbook 4155.1, Rev. 4 Chapter 1

6. Appliances: The Valuation Protocol (page D-26 of Appendix D, Handbook 4150.2) requires the appraiser to note the appliances that are present in the home at the time of inspection and whether the appliance is considered personal property or part of the real estate. The protocol further directs the appraiser to treat non-functioning appliances/equipment as deferred maintenance in the valuation process.

The manner in which an appliance is attached to the dwelling would determine whether or not an appliance should be considered part of the real estate. In some real estate markets, it may be typical and customary for certain appliances to convey with the real estate. In these situations, those appliances should be considered real estate and treated as such in the valuation of the property.

In some cases, such as that of REO properties, all or some of the appliances may be missing and there may be damage to the floor, wall or ceiling finish as a result of the removal. Depending upon the magnitude of the damage, the appraiser is expected to treat the damage to the home as deferred maintenance and reflect such in the conclusion of value. Missing appliances must be addressed by the appraiser in the valuation process, particularly when the comparable sales included a full complement of working appliances.

In cases where appliances are missing and minor repairs may also be needed, lenders are encouraged to have the borrower take advantage of the Streamlined 203(k) loan product, which has no minimum repair cost threshold and is designed to cover such improvements/replacements.

First-Time Homebuyer Tax Credit - Can You Access the Money Sooner Than Waiting to File Your 2009 Tax Return?

2009-06-11T15:50:00.000-07:00

By now, most of you have heard of the $8,000 tax credit available to first time homebuyers purchasing a primary residence before December 1, 2009. The question that seems to be on everyone’s mind is whether or not the money can be obtained sooner and if so, what can it be used towards? There have been many announcements and subsequent revisions that have made it all a little confusing. Here is a breakdown of some of the current policies set forth.

At the end of May 2009, HUD announced that it will allow “monetization” of the tax credit. This simply means that the anticipated tax credit can be applied towards the purchase of the home immediately rather than waiting to receive the refund. The guidelines authorize the monetization in a few different ways.

For starters, homebuyers that believe they qualify for the credit are permitted to reduce their income tax withholdings. This will allow buyers to accumulate more cash reserves for a down payment by increasing their take home pay. Individuals must be cautious because if the purchase does not occur, the IRS could impose interest and penalty charges on the repayment.

Some state housing finance agencies and other government entities have introduced programs that will provide homebuyers with short-term loans that can be used towards the FHA minimum 3.5% down payment. Longer term loans that are secured by a second lien on the property are also permitted. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs that can be found at http://www.ncsha.org/section.cfm/3/34/2920. At this time, Arizona does not have any of these programs available.

In addition, FHA approved lenders are allowed to provide bridge financing to the buyer that is secured by the anticipated tax credit. This amount is permitted to cover closing costs, prepaid expenses and down payments above the FHA minimum of 3.5%. Unfortunately, there are no lenders participating in such programs at this time. The broad consensus in the industry is that these loans are not anticipated to surface in the near future.

First-Time Homebuyer Tax Credit

2009-06-09T17:23:00.000-07:00

With housing prices at an all time low, first-time homebuyers are in a prime position to maximize their opportunities in today’s real estate market, especially with the authorization of the $8,000 tax credit by the American Recovery and Reinvestment Act of 2009. The following is a brief summary of some of the key factors.

1. The tax credit is equal to 10% of the purchase price up to a maximum credit amount of $8,000.

2. Applies to “first-time homebuyers”, which is classified as a buyer that has not owned a primary residence in the last three years.

3. Residence must be purchased after January 1, 2009 and before December 1, 2009.

4. Any single family residence, including condos and townhouses are eligible.

5. The full credit amount is available to individuals with an AGI less than $75,000 ($150,000 for joint return). There is a phase out period for an AGI up to $95,000 ($170,000 for joint return).

6. The tax credit is refundable. The credit amount is used to reduce or eliminate the tax liability and the remaining balance is then refunded to the purchaser.

7. The credit does not have to be repaid unless the home is sold within three years of purchase. Then the entire credit amount is recaptured upon the sale.

At the end of May 2009, HUD authorized the tax credit to be utilized to cover closing costs and prepaid expenses through state housing authorities, FHA approved non-profit agencies and bridge financing. However, at this time there does not appear to be any lender participation in this type of loan.

The Price of Procrastination

2009-06-03T10:40:00.000-07:00

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what your monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Why Should I Rush to Buy?

While you may have heard discussions in the media about the decline of property values in Phoenix, the rate of decline appears to be stabilizing.

That being said, it would not be unreasonable for you to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas in Phoenix to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Phoenix, and many other areas with lower values, has been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.

Interest Rate Complacency

The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan.

But do not be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!

Markets are Unforgiving

The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money.

For anyone who was waiting for prices to drop even more, a 1.00% increase in your interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value.

If you're waiting for home prices to fall even lower, be aware that while holding out for a lower price may help you win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.

Clock is Ticking on Free Money

If you, or someone you know, is planning on purchasing a home this year, be aware that you must take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace. And since over 50% of all buyers are first-timers in today's market, this could impact a lot of people who aren't in the know.

First-Time Homebuyers Infiltrating the Foreclosure Market

2009-05-28T15:14:00.001-07:00

PHOENIX –AZ The foreclosure market in the Phoenix Area has sparked national attention and caused a dramatic increase in home sales. According to an article published by the Arizona Republic, investors trying to reap the benefits of the bargain priced foreclosures jump started the area’s housing market in the first part of 2009. In April, investors consisted of approximately 19 percent of the Valley’s home sales. Recently, the new front runner’s for home purchases belongs to the first-time homebuyers.

Market analysts believe that first-time homebuyers will soon account for half of the area’s home purchases. It is said that the federal housing plan’s $8,000 tax credit to first-time homebuyers and other neighborhood stabilization programs are providing huge incentives to help people purchase these foreclosure homes as primary residences.

The major increase in purchases is for residences priced below $150,000. Many of these properties are receiving multiple offers, which are helping the overall prices to climb. Today the median home price in the Valley is $116,500, which is up 1.3 percent since the end of April. The median price per square foot also increased 2.4 percent, reaching $84.86 per square foot in May.

Where investors dominated the market during the housing boom, accounting for 35 to 40 percent of Phoenix home sales, today lends a very different housing market. Investors are either paying cash or being forced to contribute large down payments in order to receive financing. Mortgage financing is more favorable to individuals purchasing primary residences and placing larger requirements on investors to deter potential future foreclosures.

If you are thinking of purchasing your first home……NOW is the time to seize all of the opportunities available!!!

Obama Plan - Can You Benefit?

2009-03-17T11:28:00.000-07:00

Fannie Mae and Freddie Mac have just released details on how they will handle refinance transactions authorized by the Home Affordable Refinance program. The complete details of both programs can be found by accessing the program guides from Fannie Mae and Freddie Mac, but we will discuss some of the highlights below.

You probably have seen already that lenders and investors are in a holding pattern, as they determine if, when and how they will accept these transactions. Even though this legislation has passed - they are not all required to participate. For right now, your very first step is to contact your existing servicer, and get information from them as to their participation.

In the case of all loans, th ey have to be delivered back to the existing owner of the loan today. Meaning, if Fannie Mae is the owner of the loan, the loan must be delivered to Fannie Mae and underwritten according to their guidelines. The same is true for Freddie Mac.

You must determine who owns the loan. A borrower has the ability to do this by contacting their servicer and asking...or by using the links below. Note that the property address must be entered exactly as the agency has it on file, or it may not be found (ie: Rd or Road? St or Street? You may want check how it appears on your statement.)

Does Fannie Mae Own Your Mortgage?

Does Freddie Mac Own Your Mortgage?

Let's look at the guidelines for both Fannie Mae and Freddie Mac and point out some of the key factors we see that will impact or enhance your ability to participate.

One key point to remember is that these are the guides as they are originating from the agencies. And just as participation in the programs is voluntary, individual investors and servicers may choose to implement constraints that deviate from the guidelines, much in the same manner that we are seeing additional underwriting overlays in the processing of loan files today.

Fannie Mae

Let's look at the difference between the types of refinancing available from Fannie. The primary difference for originators is as follows between the two programs..

DU Refi Plus

Available to all Fannie Mae approved lenders using DU; borrower must credit qualify.
Available across all lending channels (retail, wholesale and correspondent).

Refi Plus

If a client does NOT qualify for DU Refi Plus, they may still be able to refinance, but would have to work directly with the current servicer, or one of the servicer's affiliates or retail channels.

Many of the guidelines are similar for both DU Refi Plus and Refi Plus. Similarities include:

That the borrower must be receiving either a lower mortgage payment or moving to a more stable type of product like an ARM to a Fixed-Rate. ARM programs are available but must have initial fixed periods of five years or greater.
The maximum LTV is 105%. There is no limitation on CLTV, but 2nd lien holders will need to re-subordinate.
If PMI does not exist on the loan today, it will not be required on the new loan, regardless of LTV. If PMI does exist on the loan, the loan will be required to be re-insured through the existing PMI company.
LLPA's (loan level pricing adjustments) exist for both loans, see guides for details or consult your investors.
The availability for appraisal waivers will exist in limited situations.
Freddie Mac
The Freddie Mac guidelines are somewhat similar to Fannie Mae's, but if you go through the detailed guidelines linked above, you will see they are a bit more vague at this time. Although Freddie Mac initially stated that these refinances may ONLY be originated by the servicer or one of their retail or affiliate channels, right as this article of the release of this article, we have learned from a source at Freddie Mac that they are looking at options that could enable more originators to be involved in refinances under this program.

One potential area that could cause a problem is that while no cash out is allowed, funds extended to cover closing costs may not exceed $2,500.

Additional Resources:

Does Fannie Mae Own Your Mortgage?

Does Freddie Mac Own Your Mortgage?

What is a Loan Modification?

2008-11-08T13:08:00.000-08:00

What is a Loan Modification?

Loan Modification is arguably the best tool that can be used by homeowners in the midst of financial hardship to save their homes from entering foreclosure.

According to the HUD website, a Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan allowing the loan to be reinstated which in turn results in a payment the mortgagor can afford.

Loan modification is a term very unfamiliar to homeowners but not for very long. What most people are coming to realize is that losing their home to foreclosure is becoming a real possibility. Home foreclosure in America today is at an all time high and is affecting many homeowners that never believed they could lose their home to foreclosure. Homeowners are feeling the crunch of higher interest rates, fuel costs, and a slowing economy. A loan modification may be the only way for a homeowner to save their home. Negotiating with the bank for a modification of your home loan can be an overwhelming process for many homeowners and Pinnacle Hill Consulting is here to take the guesswork out of the entire process and keep you in your home at a payment you can afford.

To ensure that you understand what a loan modification can actually do for you, consider the following facts:

* A loan modification is indicated when the original loan that is secured by a residence has terms that make it impossible for the homeowner to continue making the payments, thus risking the loss of the residence.
* Loan modifications are not the same as debt consolidations, refinancing loans, or even forbearances. Instead, they are long term solutions for rising interest rates or other hardships that are threatening to overwhelm the budget of a homeowner.
* Loan modifications typically involve a reduction in the interest rate, principle balance or an extension of the length of the term of the loan. In some cases the resolution involves a different type of loan or a combination of the three.
* Loan modifications stop foreclosure proceedings and instead reinstate the loans as they are being modified.

The following are some of the factors that explain why lenders are actually in favor of working with the borrowers and their negotiators in order to reach an equitable loan modification agreement:

* All or portion of the outstanding principal and interest, past due escrow, late fees, and even costs may be rolled into the loan modification and thus will not be lost revenue to the lender. Since they are spread over a long period of time, they do not pose a problem to the borrower.
* Modified mortgages may use a step rate approach or an extended term methodology to provide for the repayment of the due and past due funds. The lower payments ensure the repayment by the borrower while to the lender the added time is actually money in the bank in terms of yet to be earned interest due.
* Foreclosure is avoided and even though banks routinely foreclose on properties and sell the homes to other buyers for a fraction of a price, the slowing housing market has made it difficult for banks to unload such properties and then recover any additional funds from the previous homeowners. Loan modification is a fiscally much more attractive solution for any lender.
* A modified loan protects the credit rating of a borrower and it also helps lenders in showing less defaulting loans in their portfolio. This of course makes a good impression when the financial institution is wooing potential investors.

For more information please visit www.pinnaclehillconsulting.com.