Given the economic backdrop (high unemployment, etc.) we feel this move is close to a bottom. Trouble is, picking bottoms are like catching falling knifes, hard to do without some pain. Best bet for Austin mortgage borrowers is to use the float down option ("option to lower your interest rate one time") to guard against a reversal (rally).
This country needs to see jobs growth of at least 250K per month just to break even. That will take time allowing Austin mortgage rates to stay low into yearend and beyond.
Given that we are at the best levels in a month, your timing couldn’t be better in front of such a high profile release. We’ll preview the Employment Report early this afternoon.
Best bet for Austin mortgage borrowers is to be conservative/cautious with locking your interest rates as the political news will be tomorrow morning's early trade
Mortgage backs have slipped into the red. As I mentioned last week, the next few days could be high volatility, market moving affairs with the mid-term elections, FOMC meeting, and a boat load economic data culminating with the Employment Report on Friday.
With the elections and the Fed meeting next week to hopefully clarify QE2, things could get wild. We also have the Employment report for October a week from tomorrow. Austin mortgage borrowers are advised to take advantage of any rate improvement we see as the skies have yet to clear.
According to a Bloomberg news story, PIMCO (bond fund), Blackrock (hedge fund), and the New York Federal Reserve are seeking ways to force B of A to buy back mortgage backed securities to the tune of 47 billion. Reason given; due to credit quality and the failure by Countrywide to properly service loans, they have lost value – “soured.” What else is new.
Overall, trading today has been a range-bound affair with prices above yesterday’s lows and below yesterday’s highs. Traders call this an “inside day” which is simply a neutral pattern. Expecting mortgage pricing to hold steady is a pretty good bet.
Call the market neutral/bearish with good support nearby. As we have preached all week, defense is your friend, Austin mortgage borrowers, and the exclusive float down option from Max Leaman is a no brainer.
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.
