Just a quick note as we are close to a worsening mortgage price change.  Treasuries rallied as contagion and fear have investors and traders by the throat.  Burning banks in Greece and riots in the street are a wake up call to every nation in the world who spends more than they take in.  Hope the White House is watching.  Flight to quality buying is in bull form with the 10 year note up 20/32’s (yield 3.54%) and the 30 year bond up 1 point.  The rally is all treasury related as mortgage backs are up only 5/32’s.

Chart work points to resistance reached from 4 month ago levels and overbought conditions are in vogue.  When something happens to change the dynamics of the Euro fiasco, we will see a reversal of fortune in mortgage pricing.  The economic fundaments of our country just don’t support lower Austin mortgage rates.  Be careful out there as this rally is a one trick pony!   More in a few.