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

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

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

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

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

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

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

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.