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.”
Just a heads up as the market is on the move. Into the close, stocks (Dow and Naz) on the big board are making a comeback, down 87 points. Naz is off 18 points, cutting its losses in half. With the Dow down nearly 300 at one time, the reversal seems to have legs. We also have 45 minutes to go so anything can happen. More importantly, the 10 year note and mortgage backed securities are starting to dip. The 10 year note has cut its gains in half on the day.
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With Austin mortgage rates/pricing at the best levels of the year and the 10 year note hitting 2010 low yields, the time is right for borrowers to lock in their Austin mortgage rates. Perfect time for Austin borrowers to use the exclusive float down program offered by Max Leaman at PrimeLending Austin. Call Max at (512) 293-1239.
Post-FOMC meeting release: Market is quiet with the 10 year note slipping a little, now up 3/32’s to yield 3.37%. Mortgage backs are still at plus 1/32nd, holding their own. Stocks making a comeback with the Dow down 55 points and the Naz off 13. Markets are as nervous as cat so be careful out there.
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.
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.
Good news is that the selling of late is moderating. Not so good news is that we do not see a catalyst to rally the market. For the time being, I’d say we are in a “Goldie Locks” market, not to hot, not to cold, but just right. Best to keep both hands on the wheel.
Last month’s auction however was a disaster with only 23.9%. Technically, we’re right up against the down trend line. This is where the battle of bulls and bears will take place and the weapon of choice seems to be the 30 year bond auction outcome (12:00 cst).
Bernanke’s Fed Exit strategy - pay particular attention to the fact that they continue to anticipate concluding the purchase of MBS and Agency Debt Securities at the end of March. Weather concerns have shut down most of the Mid Atlantic and Eastern seaboard, adding to light volume and a volatile trade. T
