bill gross

MBS slide seems to be coming from traders reading the tea leaves of the Housing Summit

Part of the whip lash seems to be coming from traders reading the tea leaves of the Housing Summit. Comments by Bill Gross that Pimco wouldn’t buy a mortgage security unless the government backed it or if they did, they would require a minimum of 30% down payment. Other comments range from having FNMA/FHLMC reduce all current mortgages to 4.0% as a stimulus measure for the economy. How would you like to be invested in a few billion of 4.50% or 5.0% paper and take a hair cut to 4.0%?

August 18, 2010|Austin Mortgage Market|

Austin mortgage pricing worsening as deal has been made between President Obama and BP

Treasuries and mortgage backs are starting to drift lower (higher yields/worsening Austin mortgage pricing) as an apparent deal has been made between the Prez and BP. Most likely something to do with an escrow account to pay the bills.

June 16, 2010|Austin Mortgage Market|

If there is a silver lining, you’ll find it in low Austin mortgage rates today, tomorrow, and well into the 3rd quarter

Overall, the report does nothing to instill confidence in economic growth. Matter of fact, it’s started a new group of traders and investors fanning the fires of a double dip recession. Bill Gross is now calling for unemployment to go over 10% in the coming months. If there is a silver lining, you’ll find it in low Austin mortgage rates today, tomorrow, and well into the 3rd quarter.

June 4, 2010|Austin Mortgage Market|

The trend is changing and even though we don’t like it, a “new normal” for Austin mortgage rates is in the works

The morning after continues towards the path of least resistance, that being higher yields and worsening Austin mortgage pricing. Certainly the economic fundamentals of a recovering economy, continiously evolving fiscal policy which we feel is more borrowing and less monetary stimulus, and a reluctance of our foreign partners to take on our debt/risk are the heavy weights in this move to higher yields.

March 25, 2010|Austin Mortgage Market|

If the Fed steps in too quickly to raise rates, we could see a repeat of what happened in 1937 when the Roosevelt administration prematurely bumps rates

What needs to happen to solidify a recovery is an expansion or long term investment, consumer spending, and lowering the unemployment rate. If not, we could see another economic dip. If the Fed steps in too quickly to raise rates, given my last statement, we could see a repeat of what happened in 1937 when the Roosevelt administration prematurely bumps rates.

January 4, 2010|Austin Mortgage Market|

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