The National Association of Realtors (NAR) reported the Pending Homes Sales index rose in April for the third month in a row, registering a 6% increase over the upwardly revised March figure. This index measures the number of homebuyers signing purchase contracts. April Pending Home Sales hit their highest level since October 2009 and are UP 22.4% year-over-year. Like Existing and New Home Sales the week before, a good part of the gain was put to the tax credit expiration that required a signed contract by April 30. The NAR also forecast new home sales will be UP 18.5% for the year.
The big economic news this week was Friday's Employment data, which fell short of Wall Street forecasts and pushed mortgage rates lower. Investors continued to watch the situation in Europe, but there were no major market moving developments. Due to a rally on Friday, Austin mortgage rates ended the week lower.
With yields near record lows and mortgage pricing at or near the best levels in some time, its fool’s gold not to lock in your Austin mortgage rates
With yields near record lows and mortgage pricing at or near the best levels in some time, its fool’s gold not to lock in your Austin mortgage rates. If traders jump the sell side, we see the trade to be shallow, say .50 bps worsening to mortgage pricing as cross currents from around the globe will still be there to support fixed income products.
With Austinmortgage rates near their best levels, the prudent move is for Austin homebuyers and Austin refinances to lock in their interest rates
With Austinmortgage rates near their best levels, the prudent move is for Austin homebuyers and Austin refinances to lock in their interest rates. The employment report is the most volatile, highest profile piece of economic data in the field and with the market looking for a strong number, the probability that mortgage pricing will be worse this time tomorrow is high.
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.
Before we get into the Employment Report, let me try to explain what happened yesterday when stocks traveled to the down 1000 point abyss. On the NYSE we have circuit breakers, a system that is on individual stocks to slow down trading for 30 to 90 seconds, letting bid and offer imbalances catch up. This makes for a “true valued” market, not one that is lop sided.