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

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

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

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

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

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

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

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.