Given the firepower the Fed is willing to throw at the market via Quantitative Easing, we would not expect to see mortgage rates rise much further. We are however very close to a worsening price change

money-pillsBoth bonds and stocks have slumped today after the Wednesday/Thursday stealth rally.  Speaking of the rally, it was straight up until late morning (yesterday) and then started to give back gains, closing in negative territory by day’s end.  Today has seen follow through in both bonds and stocks with the Dow currently down 125 points and the 10 year note off 13/32’s (yield 2.64%).  Mortgage backs has followed suit, down 11/32’s today and over 3/4th from yesterday’s early morning pricing. 

Market wise, we see this as a period of consolidation, one that is more about fatigue.  So much has been going on with TARP, TALF, AIG, FOMC, and U and ME that  the market is simply wore out.  Given the firepower the Fed is willing to throw at the market via Quantitative Easing, we would not expect to see mortgage rates rise much further.  We are however very close to a worsening price change. 

Have a great weekend.

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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