The good news is it’s Friday. The not so good news is where the market has closed.
The good news is it’s Friday. The not so good [...]
Existing Home Sales Surge
There were few major surprises in the economic news this week, and little change in the stock market. While there was a great deal of daily volatility, Austin mortgage rates ended the week nearly unchanged.
While a number of Fed Governors are pounding the rate rising drum, the policy statement continues to favor low rate, easy money well into 2010
While a number of Fed Governors are pounding the rate rising drum, the policy statement continues to favor low rate, easy money well into 2010. What they would like to do is communicate an upcoming transition period. One that would produce a soft landing instead of going cold turkey. With their focus on employment and inflation, it would seem that rates will remain low until the unemployment picture stabilizes and then starts to improve.
Fall in Continuing Claims looks good on the surface but in reality reflects unemployed workers exhausting their 26 week’s worth of benefits
Weekly Unemployment Claims hit the tape plus 11K to 531K, well above the 515K economists had expected. Continuing Claims when the other way, falling 98K to 5.92 million, a level not seen since March 2009. The fall in Continuing Claims looks good on the surface but in reality reflects unemployed workers exhausting their 26 week’s worth of benefits.
Housing numbers didn’t impress anyone
Apple blew the doors off with earnings at $1.82 per share. PPI posted better than expected numbers and certainly takes the Fed off the inflation hook. Housing numbers didn’t impress anyone. We’ll stick with our neutral market call while leaning towards the bullish camp.
We’ll stick with our neutral call, keeping one eye on a stock chart and the other on MBS
With most chart time frames in harmony, the future of interest rates will most likely follow the stock market’s lead. We’ll stick with our neutral call, keeping one eye on a stock chart and the other on MBS.
Austin Mortgage Market Update – For the week of October 19, 2009 – Vol. 7, Issue 42
For the third week in a row, rates on 30-year fixed-rate mortgages remained below 5% in Freddie Mac's Primary Mortgage Market Survey. The average for conforming mortgages was 4.92% with an average of 0.7 point (including the origination fee) for 80% loan-to-value ratio loans to borrowers with good credit.
Forbes Ranks Austin-Round Rock, TX “America’s Recession-Proof Cities To Retire In”
Forbes ranked Austin #6 in the nation for their list of "America's Recession-Proof Cities to Retire In." Forbes based their rankings on the country's 40 largest metropolitan statistical areas and applied seven metrics. Texas cities Dallas-Fort Worth, Houston, and San Antonio also made the list.
Potential rate lock selling to hedge upcoming corporate bond issues could weigh on the market, effecting Austin mortgage pricing in a negative way
Little is seen to change the afternoon trade with the exception of potential rate lock selling to hedge upcoming corporate bond issues. If this occurred, it would weigh on the market, effecting Austin mortgage pricing in a negative way.
Dow Crosses Above 10,000
Stronger than expected economic data, solid earnings reports, and upward revisions to the Fed's growth forecast propelled the Dow stock index above the 10,000 level for the first time since October 2008. However, these same factors were unfavorable for Austin mortgage rates, and they ended the week modestly higher.