bonds

Currency wars is what this is all about and the Fed is getting exactly what it hoped for, consumer expectations of rising inflation to shut the door on deflation

Currency wars is what this is all about and the Fed is getting exactly what it hoped for, consumer expectations of rising inflation to shut the door on deflation. This was evidenced in last week’s Michigan Sentiment Survey. With QE2 priced in “before” it happened and the negative connotations mentioned above, treasuries have continued to be slaughtered, sending credit costs higher, doing nothing to stimulate the economy. Look for the Fed to try and talk rates back down.

November 15, 2010|Austin Mortgage Market|

With the Employment Report for October due out at 7:30 am cst tomorrow, the prudent thing for Austin mortgage borrowers is to lock their Austin mortgage rates now

Given that we are at the best levels in a month, your timing couldn’t be better in front of such a high profile release. We’ll preview the Employment Report early this afternoon.

November 4, 2010|Austin Mortgage Market|

Austin mortgage borrowers are advised to take advantage of rate improvement we see as the skies have yet to clear

With the elections and the Fed meeting next week to hopefully clarify QE2, things could get wild. We also have the Employment report for October a week from tomorrow. Austin mortgage borrowers are advised to take advantage of any rate improvement we see as the skies have yet to clear.

October 28, 2010|Austin Mortgage Market|

Austin mortgage borrowers are advised to be defensive

Austin mortgage borrowers are advised to be defensive. Stocks will be the key. If they slip, we’ll do better. Overall, QE2 will keep a floor under the market. Just the same, we’ll need to deal with the volatility.

October 21, 2010|Austin Mortgage Market|

Call it neutral/bearish and not a market to throw caution to the wind

Next week will be the true test, one that we would expect will see the market trade sideways to a little better (slightly improving mortgage pricing). Overall, we think this is the low probability trade as QE2, even though it is fully priced in, is a force to be reckoned with. When the Government is the buyer of choice, most follow the ant age, “Don’t fight the Fed.”

October 15, 2010|Austin Mortgage Market|

Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side

Text book trading here as this baby is tracking the down trend line like a hunting dog. Good news is that we are at good support mentioned this morning. Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side.

October 15, 2010|Austin Mortgage Market|

Overall, this 30 year bond auction was not a dog but a pack of them

13 billion of 30 year bonds just hit the tape. Yield 3.852% with a whopping 3.2 bps tail. Indirect Bidders and Direct Bidders took 41% of the auction, leaving the street to mop up nearly 60%. Bid to cover stunk at 2.47 to 1. Overall, this was not a dog but a pack of them. Give it a D just because we hate to fail anybody. Bonds, notes, and mortgage backs are trading fast market conditions with the 10 year off ½ point and the bond down over 1 point. MBS now off 5 to 7/32’s.

October 14, 2010|Austin Mortgage Market|

Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect

Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect.

October 14, 2010|Austin Mortgage Market|

Best bet for Austin mortgage borrowers is to take a defensive posture

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.

October 13, 2010|Austin Mortgage Market|