With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
Last week, housing market news was thin on the ground. It was good to see that fixed-rate mortgage rates dropped again, according to Freddie Mac's weekly survey of conforming mortgages, which came out Thursday. The report was accompanied by encouraging words from Freddie Mac's chief economist Frank Nothaft, who said: "The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13 regional economic report....Economic activity improved in 10 of its 12 districts. Home sales...increased due in part to the home-buyer tax credit and house prices appeared to have changed little since its last report." The bottom in home pricing appears to have formed in many areas of the country.
Keep in mind that interest rate forecasting has been tough to handicap, giving us hope for a day only to turn into a one hit wonder. Same rules apply with such a volatile environment; if you like it, lock it. We’ll try to wrap this up later today.
While Austin mortgage rates climbed in December, they have decreased during the first two weeks of January. A combination of factors was favorable for mortgage markets this week. Low inflation, weaker than expected economic growth data, and strong demand for the Treasury auctions all helped Austin mortgage rates move a little lower.
Closing levels on FNMA 4.5% securities are back to opening levels. The grind higher has created a good, not great bullish signal on daily 10 year note charts.
The market was looking for a better number, given high hopes of a better holiday season. We see the negative December reading as unsettling, reflecting a consumer that has started to spend but at a snail’s pace.
It’s that time of year again - tax time! One way to lower your property taxes is to file your Homestead exemption form. By filing this form, you can reduce the taxable amount of your property’s value and thus reduce the amount of taxes you will have to pay in future years.
Volatility has jumped as sellers press the market lower. Could be hedging for tomorrow’s 30 year bond auction or just a distribution trade for the new issue 10’s but nonetheless, prices are worsening.
Results just hit the tape with a 3.0 to 1 [...]
Just a quick update as we are minutes away from the results of today’s 40 billion 10 year note auction. The market has slipped a touch, primarily due to hedging in front of the issue. 10 year note down 8/32’s (yield 3.75%), MBS off 5/32’s, and stocks up 33 points on the Dow. The $10,000.00 question is who will or will not show up to buy the auction.
