Monthly Archives: July 2009

Auction Results Push Austin Mortgage Rates Lower

Mortgage investors were more focused on this week’s Treasury auctions than on the economic data. Overall, demand remained healthy for US Treasury securities, and mortgage rates ended the week a little lower. Major economic reports on Gross Domestic Product (GDP), … Continue reading

TDHCA 90-Day DPA: $8,000 First-Time Homebuyer Tax Credit for Down-Payment and Closing Costs

Program Overview In an effort to monetize the $8,000 tax credit and to assist borrowers with down-payment and closing costs, TDHCA created the 90-Day Down Payment Assistance Program. TDHCA has the authority to offer tax credit advances with second liens. … Continue reading

Results are what traders call a “bow wow” (dog) showing little demand for that yield and duration

The 5 year note auction (39 billion) just hit the tape with very poor response.  The issue created a tail of 5.4 bps (very high and bearish) and bid to cover was a measly 1.92 to 1.  The results are … Continue reading

Changes in Government Guidelines May Affect Your Closing Dates

HERA At-A-Glance What happened? Going into effect on July 30, 2009, the Housing Economic Recovery Act (HERA) contains an amendment to the Truth-In-Lending Act (TILA), named the Mortgage Disclosure Improvement Act (MDIA). What is the purpose of HERA? The legislation was designed … Continue reading

FAQ – Housing Economic Recovery Act (HERA) and Home Valuation Code of Conduct (HVCC)

1. Does the new legislation change home loan applications taken before these guidelines go into effect? If the purchase property was documented before May 1, 2009, the application is not subject to HVCC. Likewise, if the purchase property was documented … Continue reading

Volatile mortgage price action as stocks are off 52 points on the big board and bonds trade like a Six Flags ride

Bonds, notes and mortgage backs had a nice start to the day, rallying as Consumer Confidence painted a bleak view going forward.  Just out, the 2 year auction results are taking a little wind out of our sails.  Indirect bidders … Continue reading

We see the selling as shallow into the later part of the week and then a rebound/rally to deliver better mortgage pricing as we close the book on July

Both stocks and bonds opened on the weak side this morning. New Home Sales blew the doors off economist’s estimates, up 11% to a seasonally adjusted 384K annual units. Inventories were down to 8.8 months, the lowest level since October … Continue reading

With stocks in control, the balance of the week could see continued pressure (on mortgage rates) unless someone of substance “misses” on earnings

Stocks are on fire, closing up 256 points on the Dow and 63 points on the Naz.  Fixed income products are running for cover, pushing prices through the 38% retracement of the June/July rally.  For the record, the 10 year … Continue reading

In our opinion, this is a true reflection of the economy. One that has manufacturing falling hard and fast, coupled with increasing unemployment.

The winds of change have once again blown through the financial markets.  Just last week, analysts were talking about skyrocketing unemployment, consumer sentiment sliding, and stocks looking to retest the March bottom.  Today, it’s all about the recession being over … Continue reading

Our longer term view is still the same, low interest rates into yearend as the consumer continues to dig in their heels and look for work

The selling which entered the market late yesterday has carried forward today.  Goldman Sachs released 2nd quarter earnings this morning, blowing away the pre-release estimates by nearly a dollar and a half.  Top line growth was respectable as well, posting … Continue reading