With risk reward not in your favor, Austin borrowers are advised to lock in their Austin mortgage interest rates and step aside as we’re not sure whether the light in the tunnel is the end or a train.
It will become more and more difficult to improve Austin mortgage pricing/ lower yields without new fuel (catalyst). At the same time, the economic fundaments do not support higher Austin mortgage rates or worsening mortgage pricing. So, expect Austin mortgage rates to stay low for some time to come.
The Mortgage Bankers Association reported demand for purchase mortgages was down 5.7% last week from the week before. Analysts felt the decline showed that the federal tax credits ending in April took away from future sales.
Just a heads up as the 10 year note has taken a turn for the nurse, now off 13/32’s. The 30 year bond is down 23/32’s as well, both products of a stock market that’s revved it up a bit. The Dow is up 180 points while the Naz is plus 44 points. Mortgage backs are holding steady albeit off 2/32’s. Typically, if the 10 year note holds at current lower levels, mortgage backs are bound to “catch up.”
riday’s Employment data will be huge. Some are calling for as much as 600K new jobs created. Keep this in mind today and tomorrow as a print of that magnitude will raise holy H E double hockey sticks with Austin mortgage pricing. Be square or beware. We’ll handicap the report tomorrow.
Quiet trading in both stocks and bonds has greeted the market. Stocks opened on the soft side, down 80 or so on the Dow but have since recovered to go positive by 72 points. The 10 year note was up 10/32’s at one time but currently is trading plus 1/32nd to yield 3.30%. Mortgage back haven’t done much, trading plus 4/32’s at the highs and now are plus 2/32’s. We’re expecting more of the same until we start to set up (Thursday) for the May Employment report due out Friday at 7:30 am cst.
Just a heads up as the market is on the move. Into the close, stocks (Dow and Naz) on the big board are making a comeback, down 87 points. Naz is off 18 points, cutting its losses in half. With the Dow down nearly 300 at one time, the reversal seems to have legs. We also have 45 minutes to go so anything can happen. More importantly, the 10 year note and mortgage backed securities are starting to dip. The 10 year note has cut its gains in half on the day.
With Austin mortgage rates/pricing at the best levels of the year and the 10 year note hitting 2010 low yields, the time is right for borrowers to lock in their Austin mortgage rates. Perfect time for Austin borrowers to use the exclusive float down program offered by Max Leaman at PrimeLending Austin. Call Max at (512) 293-1239.
Post-FOMC meeting release: Market is quiet with the 10 year note slipping a little, now up 3/32’s to yield 3.37%. Mortgage backs are still at plus 1/32nd, holding their own. Stocks making a comeback with the Dow down 55 points and the Naz off 13. Markets are as nervous as cat so be careful out there.
Euro is in the driver seat for every market. It goes like this; as the Euro weakens, the dollar strengthens, stocks go lower, oil goes lower, gold goes higher, and 10 year note/mortgage backed security pricing gets better. Flip side is Euro strengthens and then you know the rest of the story.
