We could be seeing the beginning of a nice correction in stocks. That my friends would put a little more giddy up in our Austin mortgage pricing

TGIF.  Volatile times are abound this morning as Iran finally admits to an underground nuclear facility, Fed Governor Warsh talking about the Fed beginning the tightening cycle “soon” and being more aggressive than market expectations (Op-Ed WSJ), Europe placing tariffs on China, Durable Goods (those things expected to last 3 years or more) down 2.4%, well below market expectations, and New Home Sales up .7% to a 429K annual unit pace.

Cash seeking a return and/or shelter from our wicked world once again is running to Treasuries.  The trade however has been on both sides of unchanged due to all of the above.  Stocks have moved from red to green and back to red again, currently off 19 points on the Dow.  The 10 year note is up 5/32’s, trading at 3.35%.  That level is significant as referenced in yesterday’s Market Update.  Any close below 3.36% will shift the advantage to the bulls.  Given the “outside day down” on the S & P chart Wednesday, along with continued pressure yesterday and today, we could be seeing the beginning of a nice correction in stocks.

That my friends would put a little more giddy up in our Austin mortgage pricing.  For now, keep an eye on stocks and bonds!

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