The light we were seeing “is” the end of the tunnel which should produce better mortgage pricing into Friday’s Employment release

Two fundamental factors, Pending Home Sales falling 16% and the Fed being open to extending the MBS purchase program to help underpin the housing industry gave us the boost.  The chart work I was waiting to see was if we could close above the 8 day moving average, something we haven’t done for over 2 weeks.  Given that fact that we closed above the 8 day, many bearish signals (ADX, Trend Intensity, etc.) have been neutralized, crippling the bears and reducing the probability of continued bearish trending.  In other words, the light we were seeing “is” the end of the tunnel which should produce better mortgage pricing into Friday’s Employment release (7:30 am cst).  Given the severity of the selling over the past 3 weeks, we could easily see another 1 point gain in the 10 year and another ½ point improvement in MBS.  This will need to occur within a short time frame (2 days) as all bets are off come Friday.

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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