Monthly Archives: April 2010

The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote

April 28, 2010

The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote. They also commented that economic conditions warrant exceptionally low levels of the Fed Funds rate for an extended period. Kansas City Fed President Thomas Hoenig was the lone dissenter, citing against the policy believing that a repeated expectation could lead to the buildup of “financial imbalances” and run the risk of macroeconomic and financial instability. Continue reading →

42 billion of 5 year notes hit the screen to yield 2.54% with 49% going to the Indirect bidders

April 28, 2010

42 billion of 5 year notes hit the screen to yield 2.54% with 49% going to the Indirect bid. Direct bidders (Wall Street) took 14% with a bid to cover of 2.75 to 1 (average is 2.69%). Good news is that the yield came in on the screws (no tail), bid to cover was above average, and Indirect buyers were strong. Not so good news is that the “street” stayed away. We’ll give it a B. Continue reading →

No Austin mortgage rate change is expected but watch the FOMC policy statement closely

April 28, 2010

We also have the FOMC announcement today at 1:15 pm cst. No Austin mortgage rate change is expected but watch the FOMC policy statement closely. Hopefully, we will not get sideswiped. Want to get this out as the market is taking some heat. Mortgage backs now off 10/32’s so a price change is imminent. Continue reading →

Bonds, notes and mortgage backs caught their fall and reversed course, now trading at the day’s best levels

April 27, 2010

Just when it looked like we may slip into the afternoon, stocks turned tail and ran, now down over 200 points with 4 minutes to trade. Bonds, notes and mortgage backs caught their fall and reversed course, now trading at the day’s best levels. Continue reading →

The market will need to close above this level (below in yield) or at least stay near that level to confirm a near bull trend is in the making

April 27, 2010

Technically, the rally today has formed a high volume area at 117 21 (yield of 3.68%). The market will need to close above this level (below in yield) or at least stay near that level to confirm a near bull trend is in the making. Given that so may outside influences have played a factor today, we view the move as somewhat suspicious. Not saying that we’re going to reverse in any huge way. Just cautious about any further advances (rally). Keep that in mind as the day progresses. Continue reading →

Seems like a good day to take advantage of the best Austin mortgage pricing in quite some time

April 27, 2010

Technically, the stealth rally has taken us to major resistance, right at the low yield mark of 3.67%. A break and close below 3.67% is needed to confirm the upside move and project that further gains (lower yields better mortgage pricing) is in the cards. With most oscillators now neutral to bullish, the only fly in the ointment is growing overbought conditions on the chart. Seems like a good day to take advantage of the best Austin mortgage pricing in quite some time. Continue reading →

No news today but Greece once again is in the headlines

April 26, 2010

No news today but Greece once again is in the headlines. Rates on their 2 year note were over 13% this morning. Bonds, notes, and mortgage backs all opened to the plus side with current coupon MBS up 6/32’s. Just a heads up as they are starting to slip, currently up only 2/32’s. Worsening Austin mortgage price change is at hand. Continue reading →

Austin MortgageMarket Update – For the week of April 26, 2010

April 26, 2010

The week ended on the most dramatically impressive new home sales numbers in 47 years. March’s 26.9% increase was the biggest monthly sales gain since 1963, taking us to a 411,000 annual rate! Supply dropped to 6.7 months, inventories fell to 228,000 and the median price went to $214,000, up 4.3% versus last year. Some put the sales surge to the soon-to-expire tax credit, but the facts remain that the economy IS recovering and homes ARE substantially more affordable! Continue reading →

Austin Mortgage Rates Rise on Improving Economic Data

April 23, 2010

While inflation remained low, stronger than expected economic data released this week was negative for mortgage markets. As a result, Austin mortgage rates ended the week a little higher. Continue reading →

New Home Sales gains also smell of the last mad rush for 8K in buyers credit money before we put that program to bed the end of next week

April 23, 2010

New Home Sales were also released, up 26.9% to 411K annual units. The print blew away economists estimates of plus 330K. Every region of the country rebounded with the “South rising again”, up 43% month on month. Although the numbers were great, they are coming off the worst month (February) in 22 years. The gains also smell of the last mad rush for 8K in buyers credit money before we put that program to bed the end of next week. Continue reading →