Tag Archives: MBS

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. Continue reading

Overall, this 30 year bond auction was not a dog but a pack of them

13 billion of 30 year bonds just hit the tape. Yield 3.852% with a whopping 3.2 bps tail. Indirect Bidders and Direct Bidders took 41% of the auction, leaving the street to mop up nearly 60%. Bid to cover stunk at 2.47 to 1. Overall, this was not a dog but a pack of them. Give it a D just because we hate to fail anybody. Bonds, notes, and mortgage backs are trading fast market conditions with the 10 year off ½ point and the bond down over 1 point. MBS now off 5 to 7/32’s. Continue reading

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. Continue reading

Today, much like yesterday morning, we had the release of several economic numbers

Today, much like yesterday morning, we had the release of several economic numbers, some volatility, and a bond market that settled into neutral territory before pricing went out. Continue reading

Austin mortgage rates ended the week nearly unchanged

Although daily volatility was high this week, Austin mortgage rates ended the week nearly unchanged. A steady stream of economic news was roughly neutral for Austin mortgage rates, as stronger than expected economic data was offset by solid demand for the week’s Treasury auctions. Continue reading

Auction Update: 7-yr note auction draws 1.890%

Auction Update: 7-yr note auction draws 1.890%. Sees a 3.04 bid to cover (10-auction average of 2.84) and indirect bidders taking down 50.2%. Best bid to cover since 7-yr was brought back in Q1 2009. Pretty solid auction -Treasuries and mortgages are regaining some of the ground lost during the morning trading. Continue reading

Austin mortgage rates ended the week a little lower

The chance for additional Treasury purchases by the Fed helped Austin mortgage rates improve early this week. Stronger than expected economic growth data trimmed the gains later in the week. The net result was that Austin mortgage rates ended the week a little lower. Continue reading

Keep your guard up, Austin mortgage borrowers – the volatility is huge

The quick trade was to sell bonds, notes and MBS. We have since came off the sell side, to flatten out and recover. Keep your guard up, Austin mortgage borrowers – the volatility is huge. Continue reading

Use the live dog instead of the dead lion school of deciding when to lock in your Austin mortgage rate

We see this as an early warning sign that risk reward is not in your favor, Austin mortgage borrowers. Overall sentiment and economic fundamentals will continue to support a low interest rate environment but not without corrections and volatile conditions. Continue reading

With the GDP release tomorrow, Austin mortgage borrowers are advised to lock their interest rates with the float down in preparation for a stress-free weekend

With the GDP release tomorrow, Austin mortgage borrowers are advised to lock their interest rates with the float down in preparation for a stress-free weekend. The treasury market has reacted favorably, but the MBS spreads are working against us… meaning that MBS pricing has not kept the pace with Treasuries. Continue reading