No Surprises From Fed Meeting
There were no major surprises in the economic data or the Fed announcement this week. As a result, while volatility remained day to day, Austin mortgage rates ended nearly unchanged for the third straight week.
Quiet Week for Austin Mortgage Markets
During a very light week for economic news, the economic data and Treasury auctions contained few surprises and produced little reaction in mortgage markets. Austin mortgage rates ended the week nearly unchanged.
Good time to take advantage of better mortgage pricing
Good time to take advantage of better mortgage pricing. Our next hurdle will be the removal of MBS purchases by the Fed and the elimination of the 8K tax credit. Time will tell.
Fed To End MBS Purchase Program
The Fed statement essentially followed the expected script, demand was strong for the Treasury auctions, and much of the economic data released during the week was stronger than expected. The net effect was a small increase in mortgage rates during the week.
Existing Home Sales hit the tape down 16.7% to 5.45 million units, the largest decline since 1968
Existing Home Sales hit the tape down 16.7% to 5.45 million units, the largest decline since 1968. Economists were looking for a much better number. While sales declined in every region, inventories came down a bit, a good sign that “maybe” we can work through glut even if government support dwindles.
Austin Mortgage Rates Rise at Year End
The final two weeks of December have not been kind to mortgage rates. Stronger than expected economic data, comments from Fed officials, and a stock market rally all were negative for mortgage markets, and mortgage rates moved higher during the period.
Dow Crosses Above 10,000
Stronger than expected economic data, solid earnings reports, and upward revisions to the Fed's growth forecast propelled the Dow stock index above the 10,000 level for the first time since October 2008. However, these same factors were unfavorable for Austin mortgage rates, and they ended the week modestly higher.