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.
Failure to rally isn’t bad, just paints the chart neutral which will cause Austin mortgage rates/pricing to stay close to current levels. Kinda like being all dressed up and no place to go.
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.
Just when it looked like we may slip into the afternoon, stocks turned tail and ran, now down over 200 points with 4 minutes to trade. Bonds, notes and mortgage backs caught their fall and reversed course, now trading at the day’s best levels.
Let’s call the market neutral but easily influenced by a number of cross winds. A trade above 3.61% on the 10 year note will tell you the bull has left the barn!
Closing levels on FNMA 4.5% securities are back to opening levels. The grind higher has created a good, not great bullish signal on daily 10 year note charts.
