Just the thought of Quantitative Easing 2 has put a floor under Austin interest rates. Why many expect the Fed to move in that direction (November meeting), nothing has yet to happen. Fed Chief Bernanke is leading the QE2 charge, talking about “additional purchases” and how it was an “effective program” earlier in the year.
Time for Austin mortgage borrowers to get a little defensive, looking to Friday’s employment report for a little more economic clarity
One report doesn’t turn the trend but at the same time, we have been warning about topping action and poor risk reward in gambling with this market. Time for Austin mortgage borrowers to get a little defensive, looking to Friday’s employment report for a little more economic clarity.
We look to still be headed for better Austin mortgage rates. With the bounce back today, these are very nice levels.
Last week May existing home sales came in UP 19.2% over a year ago. Nonetheless, after beating expectations three months in a row, monthly sales fell short of the gain expected, off 2.2%. But the months' supply of existing homes dropped from 8.4 to 8.3 months, as inventory slid to 3.89 million homes. And the median price is rebounding, UP 2.7% over last year. Finally, the April FHFA home price index was UP 0.8% for homes financed with conforming mortgages.
On a side note, Philadelphia Fed President Plosser (who will not be a voting FOMC member until 2011) said: "Looking ahead, I see an economy that will be growing over the next two years, which means real interest rates will be rising… the federal funds rate should be permitted to rise with them." He said that higher rates may be needed before the unemployment rate and resource utilization return to desirable levels.
With both the ISM manufacturing index and the non-farm payroll employment report due out tomorrow; the market is cautiously watching
With both the ISM manufacturing index and the non-farm payroll employment report due out tomorrow; the market is cautiously watching. The Dow is down 140, and Bonds are up across the entire curve. The 10 year is up 22/32s and the 30 Year Bond is up more than point. The RSI (Relative Strength Index) on the 60 minute chart is at 87, well into the red!