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MBS Quoteline Newsletter

Read the latest news and information provided by the amazing talent at MBS Quoteline Newsletter.

Texas Mortgage Rates Increase Week of Feb. 11

Inflation concerns and a higher than expected January budget deficit caused Texas mortgage rates to move a little higher during the week. Solid demand for this week's longer-term Treasury auctions helped prevent a larger increase in Texas mortgage rates. Investors hoping for inflation relief from the Fed were disappointed. In testimony on Wednesday, Fed Chief Ben Bernanke suggested that Fed officials view overall inflation levels as low and have no near-term plans to tighten monetary policy to fight rising inflation.

Texas Mortgage Rates Moved Higher This Week

US Inflation concerns hit bond markets this week. Despite soothing comments from Fed Reserve Chief Bernanke, stronger than expected economic growth and higher commodity prices raised investor fears that future inflation may increase. As a result, Texas mortgage rates moved higher during the week.

What’s Going On With Texas Mortgage Rates?

After reaching the lowest levels in history, Texas mortgage rates have shot higher over the past two weeks. There is not a simple explanation for why this increase in Texas mortgage rates occurred, but looking at the many factors which are influencing Texas mortgage rates right now will help to understand what's going on.

Austin Mortgage Rates Improve Modestly

Uncertainty about an expected new Fed stimulus program created a lot of movement in Austin mortgage rates during the week. Fed officials offered few details about the program, though. In the end, despite the volatility, the result was just a small decline in Austin mortgage rates for the week.

Austin Mortgage Rates Helped by Weak Jobs Data

Weak Employment data and increased expectations for Fed monetary easing were favorable for Austin mortgage rates this week. Investors have priced in a high likelihood of additional Treasury security purchases by the Fed, which would increase demand for mortgage-backed securities (MBS). As a result, Austin mortgage rates declined to a new record low.