Given that we are at the best levels in a month, your timing couldn’t be better in front of such a high profile release. We’ll preview the Employment Report early this afternoon.
Best bet for Austin mortgage borrowers is to be conservative/cautious with locking your interest rates as the political news will be tomorrow morning's early trade
Uncertainty about an expected new Fed stimulus program created a lot of movement in Austin mortgage rates during the week. Fed officials offered few details about the program, though. In the end, despite the volatility, the result was just a small decline in Austin mortgage rates for the week.
Currently, the best bet for Austin mortgage borrowers: don’t take historic low Austin mortgage rates for granted.
Last week's housing market data centered on Standard & Poor's S&P/Case-Shiller Home Price Index. This showed home prices UP in July for the fourth month in a row, but the pace of their gain had slowed from prior months. With the expiration of the government's home buyer tax incentives, some observers wonder if the S&P/Case-Shiller will keep moving up. The composite 20-city index, a broad measure of U.S. home prices, showed a 3.2% increase year over year, the sixth month in a row it posted an annual gain.
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.
Austin mortgage rates were better this morning and the 10 year is up 10/32s for the day. FOMC statement will be released at 1:15PM Central, and we will follow up with more news afterward.
What we do know is that the bond market is anticipating additional accommodation via treasury/MBS purchases or others forms of stimulus. We may, in fact, have gotten a little ahead of ourselves (Austin interest rates too good) so be careful.
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.
Stocks just can’t catch a break, slip slidding once again into negative territory. Bonds, notes, and Austin mortgage pricing are the benefactors, continuing to push to lower yields.
