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

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

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

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

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

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

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

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