Today’s “big deal” will be the results of European bank stress tests, due out at 11:00 am cst. Street talk has it that the tests will show a couple of Spanish banks failed portions of the test. Others are rumored to have done ok. This will be a market mover so stay tuned. If the tests are better than expected, we’ll see stocks rally and bonds/Austin mortgage pricing get pinched. Worse than expected results will produce the opposite reaction. Volatility has already been huge this morning as we’ve seen current coupon mortgage backs trade in a 10/32’s range. Currently, the 10 year note is off 6/32’s, mortgage backs off 3/32’s, and stocks plus 30 something on the big board. Our tactical bias is neutral/defensive as the top of the range has been good resistance (best pricing), with the next move being consolidation, trading back to the bottom of the range. Keep in mind this could all change given the stress test results out in a little over an hour. Long term this is still a low Austin mortgage interest rate environment until housing and employment boot strap themselves back to life. We’ll give you the skinny once the tea and biscuits crowd gives us a jolly good!
Today’s “big deal” will be the results of European bank stress tests
July 23, 2010|Austin Mortgage Market|
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