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 fixed income market as “soft” but not in a hurry to head towards higher Austin mortgage rates. Just like I mentioned earlier today, the trade is one of consolidation and near good support.
In what looks to be a repeat of yesterday, stocks [...]
Short term, Austin mortgage borrowers are encouragerd to stay defensive. Fast money is selling the long end of the curve, dragging the 10 year note along with it. Not a lot of downside is expected from here. The week ahead will feature Case Shiller Home Prices, Consumer Confidence, Durable Goods, Weekly Claims, and GDP on Friday.
This market is hard to handicap. On one hand, Europe will not get out of the dog house anytime soon. On the other hand, our economy is stable, maybe not growing very fast but stable. We expect Austin mortgage rates to stay low into the foreseeable future with current levels being the top of the range (best levels we could see).
In a nutshell, borrowers need to be wary of waiting to lock in this market. The potential for worsening Austin mortgage prices is high as our work projects 4.0% on the 10 year before we see 3.75% (currently 3.88%). If there is a White Knight, it could come via an Employment Report (7:30 am cst Friday) that is well below expectations, say flat to negative.
Although the market has done better today, the reflex rally has yet to do anything impressive. Typically this leads to a neutral, inside day with the pattern not strong enough to overtake the bearish sentiment of the past two days. Usually, this type of short term bottom leads to a period of stalls and allows the moving averages to “catch up” to the market. We expect that with month end buying, the market could make a run for 3.83% yield on the 10 year note (currently at 3.86%) before rolling over and retesting the bottom ( heading back to 3.93%).
With so many variables to consider - employment, sovereign debt, political rang lings’, and on and on - managing interest rate risk and helping our borrowers with their decisions on Austin mortgage rates is very hard to handicap. Best advice is to use any rally to lock your interest rate in!
The week began with December Existing Home Sales dropping 16.7%. Some observers felt this was the result of uncertainty over the homebuyer tax credit, scheduled to expire at the end of November.
On the bright side, daily oscillators are still posting positive readings and holding above midrange levels. All good things for those that want lower mortgages/better pricing.
