Meant to post this Austin mortgage market update yesterday.
Treasury traders hit the cash register today as the 10 year note couldn’t push below 2.50%. Stocks on fire didn’t help the fixed income players either. Other factors in the mix were a rally in commodities (oil up $1.31) and dollar bashing while the Euro rallied.
Talking stocks, the Dow closed up nearly 200 points on the day and is having a stellar September. Funny thing is that September is historically the worse month for stocks. Just another reason why the financial markets are a “one day at a time” mind set. You just don’t know what tomorrow brings. Next week’s data will be quiet on Monday, heat up a little on Tuesday with Consumer Confidence and Case Shiller Home Prices, take the day off on Wednesday, release GDP (Q2), Weekly Claims, Chicago Purchasing Mgr’s, and the Kansas City Fed Survey on Thursday, and finish the week with Personal Income, Construction Spending, and the Michigan Sentiment Survey.
Overall, we see the fixed income market as “soft” but not in a hurry to head towards higher Austin mortgage rates. Just like I mentioned earlier today, the trade is one of consolidation and near good support.