Austin Mortgage Market

Austin mortgage borrowers are advised to take advantage of rate improvement we see as the skies have yet to clear

With the elections and the Fed meeting next week to hopefully clarify QE2, things could get wild. We also have the Employment report for October a week from tomorrow. Austin mortgage borrowers are advised to take advantage of any rate improvement we see as the skies have yet to clear.

October 28, 2010|Austin Mortgage Market|

Sellers are in control of the market with additional downside (higher yield/worsening Austin mortgage pricing ) a high probability

Sellers are in control of the market with additional downside (higher yield/worsening Austin mortgage pricing ) a high probability.

October 27, 2010|Austin Mortgage Market|

Caution is advised to Austin mortgage borrowers!

Overall, we do not see that the fundamental economic picture has changes much at all. Technically, we are in an intermediate term bear market correction. One that could push the market to yields on the 10 year of 2.75%/2.78% (currently 2.70%). If correct, we should see good support from the 62% Fibonacci level (comes in around 2.75%).

October 27, 2010|Austin Mortgage Market|

About QE2 – interesting how much it will cost the tax payers to keep the doors open at Fannie/Freddie

About QE2 - interesting how much it will cost the tax payers to keep the doors open at Fannie/Freddie. I’ll try to make some sense of it all this afternoon.

October 22, 2010|Austin Mortgage Market|

Austin mortgage borrowers are advised to be defensive

Austin mortgage borrowers are advised to be defensive. Stocks will be the key. If they slip, we’ll do better. Overall, QE2 will keep a floor under the market. Just the same, we’ll need to deal with the volatility.

October 21, 2010|Austin Mortgage Market|

New York Federal Reserve are seeking ways to force B of A to buy back mortgage backed securities to the tune of 47 billion

According to a Bloomberg news story, PIMCO (bond fund), Blackrock (hedge fund), and the New York Federal Reserve are seeking ways to force B of A to buy back mortgage backed securities to the tune of 47 billion. Reason given; due to credit quality and the failure by Countrywide to properly service loans, they have lost value – “soured.” What else is new.

October 19, 2010|Austin Mortgage Market|

Expecting mortgage pricing to hold steady is a pretty good bet

Overall, trading today has been a range-bound affair with prices above yesterday’s lows and below yesterday’s highs. Traders call this an “inside day” which is simply a neutral pattern. Expecting mortgage pricing to hold steady is a pretty good bet.

October 19, 2010|Austin Mortgage Market|

Throw all the factors together and you can make a good case for the market and Austin mortgage pricing to stall unit early November’s elections and FOMC meeting

We see the set up as neutral, given a multitude of bearish divergences on one side and Fed Chief Bernanke and his dollar printing press on the other. Throw all the factors together and you can make a good case for the market and Austin mortgage pricing to stall unit early November’s elections and FOMC meeting.

October 18, 2010|Austin Mortgage Market|

Call it neutral/bearish and not a market to throw caution to the wind

Next week will be the true test, one that we would expect will see the market trade sideways to a little better (slightly improving mortgage pricing). Overall, we think this is the low probability trade as QE2, even though it is fully priced in, is a force to be reckoned with. When the Government is the buyer of choice, most follow the ant age, “Don’t fight the Fed.”

October 15, 2010|Austin Mortgage Market|

Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side

Text book trading here as this baby is tracking the down trend line like a hunting dog. Good news is that we are at good support mentioned this morning. Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side.

October 15, 2010|Austin Mortgage Market|

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