Austin Mortgage Market

With the GDP release tomorrow, Austin mortgage borrowers are advised to lock their interest rates with the float down in preparation for a stress-free weekend

With the GDP release tomorrow, Austin mortgage borrowers are advised to lock their interest rates with the float down in preparation for a stress-free weekend. The treasury market has reacted favorably, but the MBS spreads are working against us… meaning that MBS pricing has not kept the pace with Treasuries.

August 26, 2010|Austin Mortgage Market|

Just a heads up as both the 10 year note and mortgage backs are negative on the day

Austin mortgage borrowers are advised to play defensive. Both the 10 year note and mortgage backs are negative on the day

August 25, 2010|Austin Mortgage Market|

Austin mortgage borrowers are advised to lock their Austin mortgage rates and get out of the way as the risk reward is not in your favor

Not advocating a new trend change to higher Austin mortgage rates, just a hold-steady type of market. When this kind of environment is at hand, Austin mortgage borrowers are advised to lock their Austin mortgage rates and get out of the way as the risk reward is not in your favor.

August 25, 2010|Austin Mortgage Market|

Big picture still suggests low Austin mortgage rates will be with us for some time to come

Big picture still suggests low Austin mortgage rates will be with us for some time to come. Just get used to the volatility.

August 20, 2010|Austin Mortgage Market|

Overall, we see continued low Austin interest rates on mortgages and historically low yields on treasuries well into the 4th quarter

Overall, we see continued low Austin interest rates on mortgages and historically low yields on treasuries well into the 4th quarter. The market is however forming a huge bond bubble that will someday create a massive correction. That day is not today or tomorrow.

August 20, 2010|Austin Mortgage Market|

MBS slide seems to be coming from traders reading the tea leaves of the Housing Summit

Part of the whip lash seems to be coming from traders reading the tea leaves of the Housing Summit. Comments by Bill Gross that Pimco wouldn’t buy a mortgage security unless the government backed it or if they did, they would require a minimum of 30% down payment. Other comments range from having FNMA/FHLMC reduce all current mortgages to 4.0% as a stimulus measure for the economy. How would you like to be invested in a few billion of 4.50% or 5.0% paper and take a hair cut to 4.0%?

August 18, 2010|Austin Mortgage Market|

Risk-reward of borrowers waiting to lock their mortgage rates based on expectations of better mortgage pricing are at the present, fool’s gold

Wanted to get this out quickly as a worsening Austin mortgage price change is right around the corner. As I mentioned yesterday, the risk reward of borrowers waiting to lock their mortgage rates based on expectations of better mortgage pricing are at the present, fool’s gold.

August 18, 2010|Austin Mortgage Market|

A price change for the worse is probably moving to the front burner

Just a quick update. Stateside traders were greeted with bullish price action as Japan’s growth fell short of expectations, pushing the 10 year note up 1 point before the bell. The National Association of Home Builders Confidence Index didn’t help, falling to 13, its lowest level since March 2009.

August 16, 2010|Austin Mortgage Market|

We’re in the 10th consecutive week of positive price action on the weekly chart — something that is rare to see (8 weeks or more)

Conditions favor continued bullish price action (Austin mortgage price improvement) but probably at a slower pace. Reason being is that we’re in the 10th consecutive week of positive price action on the weekly chart. Something that is rare to see (8 weeks or more).

August 16, 2010|Austin Mortgage Market|

Austin mortgage pricing to be slightly better or worse from today’s levels over the next week or so

Given the auction paper to digest and the soft economic background, we expect the market to trade in a small range with a bullish bias, allowing for Austin mortgage pricing to be slightly better or worse from today’s levels over the next week or so.

August 13, 2010|Austin Mortgage Market|

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