Markets didn’t flinch on the FOMC minutes release, content on staying at the low end of today’s trade (highest yield/worse Austin mortgage levels).
Currently, the best bet for Austin mortgage borrowers: don’t take historic low Austin mortgage rates for granted.
Today we see a continuation of Wednesday’s improving bond prices. Austin mortgage pricing followed this trend, with a combined two day price improvement.
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.
Improving economic fundamentals are leading to higher yields and worsening Austin mortgage rates. Heavy treasury auction supply is also a concern. Sovereign debt problems are not only a Greek problem but are spreading though out the Euro zone.
From the technical picture, the chart is content to hang out near the highs (low yield mark) but cannot take it out. The downside (selling) has been limited as well with the regression line since October supporting the market as well as the 8 and 21 day moving averages. We call this a goldilocks market, not to hot, not to cold, but just right. Really, the market is marking time, ready to grab a turkey leg and a cold one.
Below are the August 11th minutes for the FOMC meeting. In a nut shell, they see the economy improving yet consumer spending and unemployment remain a concern. Market is doing a little better on Fed buying of MBS and hedge funds joining the party.
