Austin mortgage borrowers are advised to be defensive. Stocks will be the key. If they slip, we’ll do better. Overall, QE2 will keep a floor under the market. Just the same, we’ll need to deal with the volatility.
With trading volume starting to fall off a cliff, expecting the market to move much in any direction is possible but probably not in the cards. Next week will be worse.
Our view that risk is back in vogue, noting gold at record highs and stocks up 60%. Systemic risk/asset bubble risk is creeping back into the market as investors are forced into stocks and fixed income spread product. The Fed is on hold for at least another year and they (Fed) will need to see GDP growth of 4% to 5% before they will tap on the brakes (raise interest rates). We’d look for Austin mortgage rates to stay low well into 2010.
We want to like the market, feeling that mortgage rates will improve down the line but at the same time, are very, very nervous about the old high yield mark at 4.0% being the bottom.
Oh what a difference a day makes. Yesterday’s failure from [...]
Bonds, notes and mortgage backs have rallied this morning as stocks take a breather from their 25% bear market pop
Bonds, notes and mortgage backs have rallied this morning as [...]