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

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?

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?

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?

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?

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?

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?

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.