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.
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