Purchase | Refi     512-710-1400

GET STARTED

APPLY NOW (CLICK HERE)

PREQUAL LETTER

LETTER REQUESTS (CLICK HERE)

Monthly Archives: March 2010

That scenario has a high probability (in our opinion) and brings with it lower Austin mortgage rates

Given the Fed’s exit from MBS purchases, their steering of quantitative easing ala Austin mortgage rates hike sooner than later, and a fragile housing market that must be content will mean more inventory and less stimulus, a case for the double dip can certainly be made. That scenario has a high probability (in our opinion) and brings with it lower Austin mortgage rates.

Correction for Earlier Austin Mortgage Blog Post

Correction: The March 29 edition of Inside Lending reported on maximum seller contributions for FHA loans that will go into effect Monday April 5. The reduction of allowable seller concessions from 6% to 3% for FHA loans is a proposed change. The FHA has NOT announced if or when this change will be put in place.

Austin Mortgage Market Update – For the week of March 29, 2010

February existing home sales were down for the third month in a row, but the 0.6% drop was less than expected. We had severe winter weather putting a damper on things and we're still seeing the hangover from sales pushed into October and November when everyone thought the homebuyer tax credit was going away. February new single-family home sales were down 2.2%. But the median price of $220,500 was UP 5.2% over last year and the average price of $282,600 was a strong 9.3% UP from a year ago. The Mortgage Bankers Association (MBA) expects existing home sales to be UP almost 4% this year to 5.34 million, going to 5.72 million in 2011. They see new home sales hitting 398,000 in 2010 and 528,000 the following year.

Although the market has done better today, the reflex rally has yet to do anything impressive

Although the market has done better today, the reflex rally has yet to do anything impressive. Typically this leads to a neutral, inside day with the pattern not strong enough to overtake the bearish sentiment of the past two days. Usually, this type of short term bottom leads to a period of stalls and allows the moving averages to “catch up” to the market. We expect that with month end buying, the market could make a run for 3.83% yield on the 10 year note (currently at 3.86%) before rolling over and retesting the bottom ( heading back to 3.93%).