With respect to Austin mortgage rates and pricing, we see little change unless the prints are major outliers, say -200K or plus 100K (Non-farm). Either one of those would start a major move. Odds are good that pricing will be pretty close to where it is right now in 24 hours.
Overall, the report does nothing to instill confidence in economic growth. Matter of fact, it’s started a new group of traders and investors fanning the fires of a double dip recession. Bill Gross is now calling for unemployment to go over 10% in the coming months. If there is a silver lining, you’ll find it in low Austin mortgage rates today, tomorrow, and well into the 3rd quarter.
While our economy continues to struggle, job losses continue, and inflation remains a non-issue, there is a growing unease about the timing of future Fed actions and the market's ability to digest them. Today's FOMC announcement is not expected to make many, if any, changes versus September's announcement but the words will be scrutinized for even small hints of policy changes.
