Best bet for Austin mortgage borrowers is to take a defensive posture. With so much bond-friendly news priced in, the risk reward for better mortgage pricing is just not there, folks.
We will continue to trade the small range that has been with us for a couple weeks now, swinging from high to low, low to high depending on stocks and ‘headlines”. Nothing huge here as we see Austin mortgage rates remaining low well into the third quarter.
Gold hit a new high this morning of $1254.50 on European currency and equity concerns. Fed Chair Bernanke hit the wire as well, trying to assure the markets that the US will avoid slipping back into recession. Doesn’t seem as many are listening given another round of early stock gains followed by selling into strength. Stock bulls are doing their best to defend the 1040 level in S&P’s (currently 1046) but need to move higher or will most likely fall under their own weight with a new target of 980.
Austin mortgage rates and pricing can go one way or the other in short order but most likely hold steady at current levels. Best to stay on defense as stocks certainly look better, Europe looks better, and the Federal Reserve Chairman hints of Fed Funds rate hikes sooner than later. Personally, we like the chart (better chance of lower Austin mortgage rates/better pricing) but the fundamentals (economic data) points to a steady recovery. A tug of war for Austin mortgage interest rates seems in the cards.
Currently, the street is showing its dissatisfaction as the 10 year note is off 8/32’s and MBS off 3/32’s
Give this baby a C. Currently, the street is showing its dissatisfaction as the 10 year note is off 8/32’s and MBS off 3/32’s. No rest for the wicked.
Tomorrows 10 year and Thursday’s 30 year bond auctions will tell the tale of the tape. Technically, the market is trading within the range formed since last Friday. We see the action as neutral but cautious.
Given that the rally today (mortgage pricing) has not eliminated the bearish trend signals and that the market will need to absorb 75 billion in new auction paper, it’s best to keep an eye on the market in case it tries to bite you
Just when we though the other shoe would drop……….., stocks [...]
Earlier today, Consumer Income hit the skids, falling 1.3% while Spending rose .4%. The Income component was the largest monthly decline since January 2005. Pure and simple, it reflects declining wage and salary disbursements.
From our technical view, the chart looks more like “crack the whip” than any type of symmetrical trading. Last Friday caught a bid from month end buying (portfolio extension needs), Monday gave it all back as stocks traded and closed above 1000 on the S & P chart, and today’s rally has been derailed by Pending Home Sales.
This market is dangerous and waiting for 4% to 4.5% mortgage rates is fool’s gold (at least for now)
To borrow from the great Winston Churchill: I cannot forecast [...]