Although daily volatility was high this week, Austin mortgage rates ended the week nearly unchanged. A steady stream of economic news was roughly neutral for Austin mortgage rates, as stronger than expected economic data was offset by solid demand for the week's Treasury auctions.
At the start of the new fiscal year(tomorrow), it appears the USDA Rural Housing program will operate under Continuing Resolution authorization until the Agricultural Appropriations budget is finalized. This frequently happens at the start of the new fiscal year when the House and Senate don't finalize the budget prior to year end.
Interesting article by Zillow Mortgage Marketplace today stating that 29% of potential borrows do not qualify for a home loan. Biggest reason, ficos below 620.
Overall, we see the stock market as moving away from any notion of a double dip, instead feeling a little giddy about taking on more risk. Reason being is that traders view one of two scenarios playing out, both good for stock prices.
Austin mortgage borrowers are encouraged to take advantage of any rallies. Too many cross currents leads to high levels of volatility. Play it safe and take advantage of your opportunities!
The quick trade was to sell bonds, notes and MBS. We have since came off the sell side, to flatten out and recover. Keep your guard up, Austin mortgage borrowers - the volatility is huge.
Best bet for Austin mortgage borrowers is to lock in their interest rate. It just makes cents (and dollars too). Expect the day to be one of “squaring up” for traders in both bonds and stocks, with not much movement seen from current levels.
We see this as an early warning sign that risk reward is not in your favor, Austin mortgage borrowers. Overall sentiment and economic fundamentals will continue to support a low interest rate environment but not without corrections and volatile conditions.
Overall, we see continued low Austin interest rates on mortgages and historically low yields on treasuries well into the 4th quarter. The market is however forming a huge bond bubble that will someday create a massive correction. That day is not today or tomorrow.
The economic environment for Austin mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low Austin mortgage rates, and investor demand for bonds remained high. As a result, Austin mortgage rates again ended the week a little lower.
