Global economic news influenced United States mortgage markets this week. While the domestic data released during the week was mixed, an improved economic outlook in many other countries was unfavorable for bond markets. As a result, Austin mortgage rates ended the week a little higher.
Gold hit a new high this morning of $1254.50 on European currency and equity concerns. Fed Chair Bernanke hit the wire as well, trying to assure the markets that the US will avoid slipping back into recession. Doesn’t seem as many are listening given another round of early stock gains followed by selling into strength. Stock bulls are doing their best to defend the 1040 level in S&P’s (currently 1046) but need to move higher or will most likely fall under their own weight with a new target of 980.
Overall, the report does nothing to instill confidence in economic growth. Matter of fact, it’s started a new group of traders and investors fanning the fires of a double dip recession. Bill Gross is now calling for unemployment to go over 10% in the coming months. If there is a silver lining, you’ll find it in low Austin mortgage rates today, tomorrow, and well into the 3rd quarter.
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.
riday’s Employment data will be huge. Some are calling for as much as 600K new jobs created. Keep this in mind today and tomorrow as a print of that magnitude will raise holy H E double hockey sticks with Austin mortgage pricing. Be square or beware. We’ll handicap the report tomorrow.
Quiet trading in both stocks and bonds has greeted the market. Stocks opened on the soft side, down 80 or so on the Dow but have since recovered to go positive by 72 points. The 10 year note was up 10/32’s at one time but currently is trading plus 1/32nd to yield 3.30%. Mortgage back haven’t done much, trading plus 4/32’s at the highs and now are plus 2/32’s. We’re expecting more of the same until we start to set up (Thursday) for the May Employment report due out Friday at 7:30 am cst.
The economic data took a backseat to events in Europe again this week. Improved sentiment about the troubles in Europe influenced the willingness of investors to purchase riskier assets such as stocks, hurting bond markets. As a result, after dropping to the lowest levels of the year, Austin mortgage rates ended the week a little higher.
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 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.
