Today we see a continuation of Wednesday’s improving bond prices
Today we see a continuation of Wednesday’s improving bond prices. Austin mortgage pricing followed this trend, with a combined two day price improvement.
Not to say we will not see lower Austin mortgage rates and better pricing but for that to come to fruition, we’ll need a major catalyst
Not to say we will not see lower Austin mortgage rates and better pricing but for that to come to fruition, we’ll need a major catalyst. Something like a stock market rout or collapse of Greece. In English, the smart money will bet against this, at least for a corrective trade that could take the 10 year note back to 3.25%. Pricing was struck with MBS unchanged, now down 5/32’s. Trigger fingers are getting twitchy.
Initial unemployment claims fell to 444k in the week ending May 8th, down from an upward revised 448k
This morning, bond prices are a touch higher following the weekly jobless claims data release. Initial unemployment claims fell to 444k in the week ending May 8th, down from an upward revised 448k. Economists had expected claims to drop from the previously reported 444k to 440k. Initial claims of 444k were a touch higher than estimates, but still a mere 5,000 above the year's low and at the bottom end of the range which has persisted throughout 2010.
These are good levels so it’s probably not a bad idea to take advantage of the current mortgage rates
These are good levels so it’s probably not a bad idea to take advantage of the current mortgage rates. Without a major breakout developing, best to keep hand on trigger!
The implication for interest rates is that unless the U.S. can reduce its massive budget deficit, the Treasury will not be able to sell its debt except at very high yields
The U.S. government cannot default on its debt obligations in the same way that a household or a corporation does. The implication for interest rates is that unless the U.S. can reduce its massive budget deficit, the Treasury will not be able to sell its debt except at very high yields.
Stocks were reacting, in part, to President Obama’s renewed focus on reigning in big banks
Bond prices rose yesterday as stocks suffered another beating. The Dow and bond yields both closed at their lowest levels in a month. Stocks were reacting, in part, to President Obama's renewed focus on reigning in big banks.
The consensus among analysts seems to be for another 10% decline in home prices in 2010, making a new bottom
The S&P / Case Shiller home price index fell in October after five straight monthly increases. While the decline was barely measurable, it serves as a reminder that the bounce back in real estate prices is not likely to occur as quickly as the three-year decline. The consensus among analysts seems to be for another 10% decline in home prices in 2010, making a new bottom.
Markets continued to show a muted response to the Dubai World debt problems
Yesterday, markets continued to show a muted response to the Dubai World debt problems and many markets essentially returned to trading levels seen before last Wednesday's announcement. The Dubai situation appears to be more of an aftershock to the past years' financial crises rather than the start of a new wave.
Austin Mortgage Market Update – For the week of November 30, 2009
The economic reports before Thanksgiving were packed with housing market data and, guess what, they were all extremely positive! Monday saw Existing Home Sales UP 10.1% to an annual rate of 6.10 million, the highest since February 2007. Sales are now UP 20% in the past two months and UP 36% from their January lows. Even better, the supply of existing homes was down to just 7 months, with inventories down to 3.57 million, the lowest level in almost three years. This puts existing homes very close to the 6-month supply level of a healthy housing market. The Case-Shiller 20-City Composite Home Price Index rose 0.3% in September. The index also showed its second consecutive quarterly increase, UP 3.1% for Q3, returning to August 2003 levels.
University of Michigan’s final October consumer confidence index was a touch higher than expected, but remains at recessionary levels
Bond prices rose on Friday as stocks sank in trading that was driven more by stock market technicals and concerns than by any other factor. Stocks had their worst week since early July. The University of Michigan's final October consumer confidence index was a touch higher than expected than September's level, but remains at recessionary levels. The Chicago purchasing managers’ index rose sharply to its highest level since December 2007 and beat expectations. The report is closely watched for clues to the national ISM index which was released today at a print of 55.7. This number was 3.1 points higher than the previous month’s reading and was higher than economists expected.