Stocks just can’t catch a break, slip slidding once again into negative territory. Bonds, notes, and Austin mortgage pricing are the benefactors, continuing to push to lower yields.
In the "for what it’s worth" department, top analyst Meredith Whitney has a bearish call on equities (stocks) and expects the U.S. economy to have a rough second half. If true, expect Austin mortgage rates to stay low into 2011.
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.
Notes, bonds, and mortgage backs have slipped as we go into the last hour and a half of trading. Stocks have been pinched as well, down 75 points on the big board.
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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.
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.
The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote. They also commented that economic conditions warrant exceptionally low levels of the Fed Funds rate for an extended period. Kansas City Fed President Thomas Hoenig was the lone dissenter, citing against the policy believing that a repeated expectation could lead to the buildup of “financial imbalances” and run the risk of macroeconomic and financial instability.
Just when it looked like we may slip into the afternoon, stocks turned tail and ran, now down over 200 points with 4 minutes to trade. Bonds, notes and mortgage backs caught their fall and reversed course, now trading at the day’s best levels.
