Overall, we see the stock market as moving away from any notion of a double dip, instead feeling a little giddy about taking on more risk. Reason being is that traders view one of two scenarios playing out, both good for stock prices.
As promised, last week's reports gave us a complete picture of the housing market in August. Housing Starts rose 10.5% month-over-month to a 598,000 annual rate, well ahead of the expected 550,000 number. Building Permits, which reflect builder sentiment further out, grew a more modest 1.8% month-over-month to a slightly smaller 569,000 annual rate. Thursday, Existing Home Sales came in UP 7.6% over July, at a 4.13 million annual rate. But let's remember, July was a record low, so this gain still left sales down 19% from August a year ago. The median price for Existing Homes, however, ticked up 0.8% year-over-year, as reported by the National Association of Realtors.
Overall, we see the fixed income market as “soft” but not in a hurry to head towards higher Austin mortgage rates. Just like I mentioned earlier today, the trade is one of consolidation and near good support.
The chance for additional Treasury purchases by the Fed helped Austin mortgage rates improve early this week. Stronger than expected economic growth data trimmed the gains later in the week. The net result was that Austin mortgage rates ended the week a little lower.
Austin mortgage borrowers are encouraged to take advantage of any rallies. Too many cross currents leads to high levels of volatility. Play it safe and take advantage of your opportunities!
Wanted to let this fly as current level mortgage pricing is now off 8/32’s as stocks continue to improve. Worsening Austin mortgage rates are a NY minute away.
Just a quick note as the market is fading into the sunset. Stocks aren’t the problem as the big board just closed off 22 points for the session. We see this as a rejection from the overhead resistance that we’ve been bumping into given the rally of the past two days. Nothing huge here. Just a little profit taking after a nice run.
The market has stabilized and buyers are stepping in. Street talk is that the Fed will have to step on the gas, keeping Austin mortgage rates low for an extended period of time “no matter what it takes.”
The quick trade was to sell bonds, notes and MBS. We have since came off the sell side, to flatten out and recover. Keep your guard up, Austin mortgage borrowers - the volatility is huge.
Austin mortgage rates were better this morning and the 10 year is up 10/32s for the day. FOMC statement will be released at 1:15PM Central, and we will follow up with more news afterward.
