Given all the possibilities and potential market moving data, best bet is to use the float down and lock your Austin mortgage rates

Light volume and a lack luster trade seems to be the theme as we move into the afternoon.  Treasuries have come back a bit as the 10 year note is only off 2/32nd to yield 3.87%.  Trouble is that mortgage back spreads have widened as sellers continue to hit the market.  Current coupon MBS are still off 7/32’s.  Part of this can be traced to quarter end window dressing (profit taking) and the winding down of the Fed’s MBS purchase program (2 billion left in the checkbook).

The spread widening seems to be uniform across the “stack”, a term used for every coupon that is traded.  This means that every mortgage interest rate is down the same amount of basis points.  Mortgage banker selling as the month comes to an end has also pressured the market.  Stocks have turned lower with the Dow off 5 points.

We still feel that valuations are in nose bleed territory and if they roll over, a 10% correction could be in the cards.  That would help mortgage pricing as well.  Given all the possibilities and potential market moving data, best bet is to use the float down and lock your Austin mortgage  rates.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

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