October, 2009 | Texas Mortgage - Texas Mortgage Rates - Leaman Team

By nature the pattern is bearish and suggests higher interest rates, worsening Austin mortgage pricing presents the higher probability

Market action, as I mentioned earlier has been a two way street. With earning season (stocks) in full swing, volatility has really picked up in both equities and bonds. Mortgage backs have been the worst performer on the day with spreads to treasuries widening as sellers continue to lean on the market. Currently, the 10 year note is off 7/32’s (yield 3.45%), MBS off 9/32’s, and stocks off only 1 point on the big board. Technically, we are trading a lower lows, lower highs type of pattern. By nature it is bearish and suggests higher interest rates, worsening Austin mortgage pricing present the higher probability. We will want to pay close attention the 10 year yield as it approaches 3.48% - 3.50%. That level is key support and “should” provide a near term bottom, followed by a rebound. If that level does not hold, MBS could feel another ½ point of pain. Play defense as the trend is not your friend!

October 15, 2009|Austin Mortgage Market|

Expectations for worsening Austin mortgage pricing is quite high so take cover

The failure of the market to hold yesterday’s gains suggest we are building on a bearish continuation pattern. English translation is one of caution, telling us it’s time to be defensive. We expect the new range on the 10 year to be 3.34% to 3.48%. Expectations for worsening Austin mortgage pricing is quite high so take cover.

October 14, 2009|Austin Mortgage Market|

Much of Friday’s increase in yields was associated with perceptions of growing economic strength and possible impacts on inflation

What a difference a long weekend makes as the majority of sellers rode off into the sunset and have not returned to rule the day as they did on Friday. Selling late last week eliminated some bullish signals off our current trend that had been established earlier this month. The drop did however find some support at the 21-day moving average at 118-055, which is also where an up-sloping trend line off the August/September lows lies. The reaction to that area suggests that selling momentum is unlikely to immediately build on the shift away from the bullish camp. Much of Friday's increase in yields was associated with perceptions of growing economic strength and possible impacts on inflation.

October 13, 2009|Austin Mortgage Market|

Inside Lending: Austin Mortgage Market Update For the week of October 12, 2009

Austin Mortgage Market Update - At the end of September, the supply of homes for sale was reported down 1.8% from the previous month in 27 major metropolitan areas. We all know the factors. Home prices are very affordable, mortgage rates and very favorable and first-time homebuyers are taking advantage of the $8,000 tax credit set to expire at the end of November, now just seven weeks away. The Mortgage Bankers Association saw loan applications for home purchases rise 13.2% last week, as the MBA's Purchase Index hit its highest level since last January. The average rate on 30-year fixed rate mortgage slid to 4.89% with an average 1.13 points (including the origination fee) for 80% loan-to-value ratio loans to borrowers with good credit. Freddie Mac's weekly survey of conforming mortgage rates put the average 30-year fixed rate mortgage at 4.87% with an average 0.7 point for 80% loan-to-value ratio loans to borrowers with good credit.

October 12, 2009|Inside Lending Newsletter|

Happy Holiday

Have a great Columbus Day!

October 12, 2009|Austin Mortgage Market|

Auctions and Fed Drive Austin Mortgage Rates

Recently, Fed officials have sent mixed signals about how soon the Fed may need to begin to tighten monetary policy. Wednesday, the Fed's Hoenig said that the Fed should begin raising interest rates "sooner rather than later," and that this action wouldn't end the economic recovery. He explained that the Fed has a long way to go just to return to a neutral monetary stance and that it will take a while for the impact of rate hikes to be felt. Thursday evening, Bernanke held with the stated view that low rates will likely be justified for "an extended period", but he added that the Fed will be ready to remove stimulus as the economy recovers. When the Fed eventually indicates that it's ready to act, Austin mortgage rates will be likely to move higher.

October 9, 2009|MBS Quoteline Newsletter|

Housing Affordability Hovers Near Highest Level In 18 Years

Housing Affordability Hovers Near Highest Level In 18 Years - Houses are the cheapest they've been since 1991. Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago, according to the National Association of Home Builders (Aug. 19, 2009). You have the financial opportunity of a lifetime.

October 8, 2009|Austin Mortgage News|

In a nut shell, what we have here is too much money chasing too few assets that are worth owning

Weak dollar, higher oil, new high in gold, stocks near unchanged, and bonds doing a little better. We’re feeling a bit like Bill Murray in “Groundhog Day”. Same trade just a new day. One memorable line from the movie; (Phil) Do you know what today is? (Rita) No, what? (Phil) Today is tomorrow. It happened. In a nut shell, what we have here is too much money chasing too few assets that are worth owning. Throw in a mixed bag of economic data and a seasonal supportive 4th quarter (for fixed income), it’s hard to see much of a change in Austin mortgage rates into year end.

October 7, 2009|Austin Mortgage Market|

Australian Central Bank raised interest rates .25%, giving a clear signal that their part of the world is starting to recover and that taking fiscal responsibility is the prudent course. Wonder what Bernanke is thinking?

Quiet day in the making as stocks hold most of their gains and bonds, notes, and MBS hold their shade of red. Nothing huge here as the 10 year note is off 5/32’s (yield 3.24%) and mortgage backs on the 4.50% coupon are off a couple of 32’s. Earlier today, the Australian Central Bank raised interest rates .25%, giving a clear signal that their part of the world is starting to recover and that taking fiscal responsibility is the prudent course. Wonder what Bernanke is thinking?

October 6, 2009|Austin Mortgage Market|

Look at it this way, if you had 500 million or so to invest what would you do?

Look at it this way, if you had 500 million or so to invest what would you do? Buy stocks after a 55% run from the bottom? Loan money to others or increase company investment, betting on a V shaped recovery? Or, buy treasuries which yield a real rate of return around 4.75%. Give me Uncle Sam’s full faith and guarantee any day or at least until there is no doubt about an economic recovery.

October 5, 2009|Austin Mortgage Market|