Austin mortgage borrowers are encouraged to take advantage of any rallies. Too many cross currents leads to high levels of volatility. Play it safe and take advantage of your opportunities!
Fannie Mae released a housing survey showing 70% of those polled in June and July feel now is a good time to buy a home. This is up from a 64% reading in January. At the same time, 83% of those people surveyed think it's a bad time to sell, which isn't such a terrible thing, since there's still plenty of inventory for buyers to choose from.
Housing starts were UP 1.7% for July to a 546,000 annual pace, but this was below expectations and all the gain came from a big boost in multi-family starts. Single-family starts were off 4.2%, declining for the third straight month. Looking at the market further out, we saw new building permits down 3.1% for July to a 565,000 annual rate.
This typically will tell us that buyers of treasuries still have the advantage but will need a little giddy up go to stay at these levels. Good time for Austin mortgage borrowers to put both hands on the wheel.
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
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.
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.
Just a heads up as the 10 year note has taken a turn for the nurse, now off 13/32’s. The 30 year bond is down 23/32’s as well, both products of a stock market that’s revved it up a bit. The Dow is up 180 points while the Naz is plus 44 points. Mortgage backs are holding steady albeit off 2/32’s. Typically, if the 10 year note holds at current lower levels, mortgage backs are bound to “catch up.”
With more supply coming tomorrow and Thursday, coupled with a stock market that may have found it’s sea legs, borrowers looking to lock an Austin mortgage rate should stay defensive short term. More in a few.
Builders are jumping on the recovery bandwagon, as January Housing Starts beat consensus estimates, heading UP 2.8% to an annual rate of 591,000 units. Single-family starts are now 35.6% up from their low a year ago. Total new building permits dropped a tad in January, but single-family permits were up 0.4% for the month and UP 48.2% from a year ago.
We saw strong evidence last week that homebuilders are well on their way to recovery. Housing starts for November were UP 8.9%, to an annual rate of 574,000 units. Single-family starts were 35.0% higher than their January and February lows. The very volatile multi-units starts were UP 67.3% from the previous month's cyclical low. And get this -- starts were UP in every major region across the country!