With yields near record lows and mortgage pricing at or near the best levels in some time, its fool’s gold not to lock in your Austin mortgage rates. If traders jump the sell side, we see the trade to be shallow, say .50 bps worsening to mortgage pricing as cross currents from around the globe will still be there to support fixed income products.
With Austinmortgage rates near their best levels, the prudent move is for Austin homebuyers and Austin refinances to lock in their interest rates. The employment report is the most volatile, highest profile piece of economic data in the field and with the market looking for a strong number, the probability that mortgage pricing will be worse this time tomorrow is high.
Just a heads up as the 10 year note has taken a turn for the nurse, now off 13/32’s. The 30 year bond is down 23/32’s as well, both products of a stock market that’s revved it up a bit. The Dow is up 180 points while the Naz is plus 44 points. Mortgage backs are holding steady albeit off 2/32’s. Typically, if the 10 year note holds at current lower levels, mortgage backs are bound to “catch up.”
riday’s Employment data will be huge. Some are calling for as much as 600K new jobs created. Keep this in mind today and tomorrow as a print of that magnitude will raise holy H E double hockey sticks with Austin mortgage pricing. Be square or beware. We’ll handicap the report tomorrow.
Quiet trading in both stocks and bonds has greeted the market. Stocks opened on the soft side, down 80 or so on the Dow but have since recovered to go positive by 72 points. The 10 year note was up 10/32’s at one time but currently is trading plus 1/32nd to yield 3.30%. Mortgage back haven’t done much, trading plus 4/32’s at the highs and now are plus 2/32’s. We’re expecting more of the same until we start to set up (Thursday) for the May Employment report due out Friday at 7:30 am cst.
Just to make your day or shall we say month, Bill #4899 which included funding for USDA PASSED THE SENATE May 27 by vote of 67 to 28. Looks like we’re back in business, folks.
For the third month in a row, Existing Home Sales beat expectations, UP 7.6% for April and UP 22.8% over a year ago. A lot of the gain was put to the tax credit expiration that required a signed contract by April 30. But buyers have till June 30 to close, so observers feel sales will probably increase for the next couple of months, then take a short break before rising again. Inventories were up from 8.1 to 8.4 months, but this is similar to April gains in prior years, rather than evidence of some huge "shadow inventory" hitting the market. Meanwhile, the median price for an existing home went to $173,000, up 4.0% from a year ago.
The economic data took a backseat to events in Europe again this week. Improved sentiment about the troubles in Europe influenced the willingness of investors to purchase riskier assets such as stocks, hurting bond markets. As a result, after dropping to the lowest levels of the year, Austin mortgage rates ended the week a little higher.
