So what’s ahead in 2011? No one knows for sure. We do know that treasury and mortgage pricing will be looking for clues. Clues as to whether or not the economy is really expanding or needs more time to clear the mine fields.
Best bet for Austin mortgage borrowers is to take a defensive posture. With so much bond-friendly news priced in, the risk reward for better mortgage pricing is just not there, folks.
Conditions favor continued bullish price action (Austin mortgage price improvement) but probably at a slower pace. Reason being is that we’re in the 10th consecutive week of positive price action on the weekly chart. Something that is rare to see (8 weeks or more).
In what looks to be a repeat of yesterday, stocks [...]
As we have mentioned in the past, Austin mortgage interest rates appear to be locked in a tight range, trading at or near the best levels we’ve seen in 14 months. Reasons being are the lack of employment growth in the US, soft housing, Europe feeling queasy, and China concerns over growth. Tough to find a reason for higher yields, worsening mortgage pricing well into the third quarter.
Austin mortgage rates and pricing can go one way or the other in short order but most likely hold steady at current levels. Best to stay on defense as stocks certainly look better, Europe looks better, and the Federal Reserve Chairman hints of Fed Funds rate hikes sooner than later. Personally, we like the chart (better chance of lower Austin mortgage rates/better pricing) but the fundamentals (economic data) points to a steady recovery. A tug of war for Austin mortgage interest rates seems in the cards.
A funny thing happened on the way to the poor house, the 401K poor house that is. Constant streaming of riots, bank burning, and chaos in Greece have ripped the Dow for over 800 points. This market is a loose cannon with panic buying coming from all across the globe.
When something happens to change the dynamics of the Euro fiasco, we will see a reversal of fortune in mortgage pricing. The economic fundaments of our country just don’t support lower Austin mortgage rates.
Technically, the rally today has formed a high volume area at 117 21 (yield of 3.68%). The market will need to close above this level (below in yield) or at least stay near that level to confirm a near bull trend is in the making. Given that so may outside influences have played a factor today, we view the move as somewhat suspicious. Not saying that we’re going to reverse in any huge way. Just cautious about any further advances (rally). Keep that in mind as the day progresses.
Technically, the stealth rally has taken us to major resistance, right at the low yield mark of 3.67%. A break and close below 3.67% is needed to confirm the upside move and project that further gains (lower yields better mortgage pricing) is in the cards. With most oscillators now neutral to bullish, the only fly in the ointment is growing overbought conditions on the chart. Seems like a good day to take advantage of the best Austin mortgage pricing in quite some time.
