Best bet for Austin mortgage borrowers is to be conservative/cautious with locking your interest rates as the political news will be tomorrow morning's early trade
Sellers are in control of the market with additional downside (higher yield/worsening Austin mortgage pricing ) a high probability.
Big picture still suggests low Austin mortgage rates will be with us for some time to come. Just get used to the volatility.
In what looks to be a repeat of yesterday, stocks [...]
Notes, bonds, and mortgage backs have slipped as we go into the last hour and a half of trading. Stocks have been pinched as well, down 75 points on the big board.
42 billion of 5 year notes hit the screen to yield 2.54% with 49% going to the Indirect bid. Direct bidders (Wall Street) took 14% with a bid to cover of 2.75 to 1 (average is 2.69%). Good news is that the yield came in on the screws (no tail), bid to cover was above average, and Indirect buyers were strong. Not so good news is that the “street” stayed away. We’ll give it a B.
5 year notes hit the block at 2.605% with 39.7% going to Indirect Bidders. Bid to cover was 2.55 to 1 and the issue had a T-Rex type tail of 4 bps. To say the least, the bond market did not like it. Mortgage backs off a minimum of 20/32’s and the 10 year is off 40/32’s.
Today’s day-end close will be very important. We need to hold 116 22/64th on the futures chart (yield equivalent is 3.75%) to feel better about the range trade continuing. With current levels at 3.77%, the market needs to boot strap itself back together or further downside (worsening mortgage pricing) will occur.
