Just wanted to give you an update on the USDA program progress. A bill was introduced by Republican Shelly Capito from W. Va. yesterday in the House. Process time to clear the House should be 7 to 10 working days. Then on to the Senate where you know who is in charge of the Finance Committee (Barney Frank).
Let me set the record straight on the availability of USDA funds. First of all, USDA has NOT been reallocated and will run out of money soon. Locking in a loan does NOT guarantee a borrower will receive USDA money. Mortgage companies and loan officers telling borrowers and REALTORS that THEY have guaranteed USDA money is plain and simple not true. The only way to guarantee a loan from USDA is to have USDA approve the loan and issue the certificate.
Popular social networking site Facebook recently made some big changes affecting users' privacy. If you've entered all your privacy settings on Facebook just the way you want them, you're OK -- as long as you kept these personalized settings when you were prompted by Facebook's "transition tool." This dialog box asked users if they wanted to opt for Facebook's new "recommended settings." If you did this, you inadvertently let Facebook publicize your private information. Here's how to change things back.
Stocks are up a hand full, mortgage backs up 2/32’s, and the 10 year note is trading at 3.81%, all positive elements. At least for today. We’ll call the market neutral/bullish yet still feeling the need to keep both hands on the wheel.
Currently, we’re right up against the top of the range (116 10 in futures and 3.83% 10 year note yield). For the market to do better (Austin mortgage pricing improvement), we need to breach and close above 116 10 (below 3.83% yield).
Last week February Pending Home Sales blasted past consensus estimates. The National Association of Realtors (NEA) index was UP 8.2% for the month and UP 17.3% year-over-year!
Bonds, notes, and mortgage backs are flat with volume running at its lowest level in 3 weeks. The tug of war that has us trapped pits stocks that just won’t fade (Dow up 45 points) on one side and Greek sovereign debt issues that just won’t go away on the other. Matter of fact, Fitch just downgraded their debt of BBB-, right where subprime paper should have been in 2006 when the rating agencies had it at triple A.
Although this week's economic data was generally stronger than expected, it was overshadowed by solid demand for the Treasury auctions and intensified concerns about the economic situation in Greece, which helped mortgage markets. After reaching the highest levels since August, mortgage rates ended a little lower than where they ended last week.
Just a note as we head into the final hour of trading. After strength took us through the major down trend line, the market failed and made new lows (highest yield of the day) into the CBOT 10 year note futures close (2:00 pm cst).
Good news is that the selling of late is moderating. Not so good news is that we do not see a catalyst to rally the market. For the time being, I’d say we are in a “Goldie Locks” market, not to hot, not to cold, but just right. Best to keep both hands on the wheel.
