Tuesday we had Pending Homes Sales, which after dropping 30% in May, fell just 2.6% in June, with the push to qualify for the tax credit no longer a factor. These figures indicate there should be a drop in Existing Home Sales come July and maybe again in August. But some analysts feel that after this post-tax-credit dip, housing will come back solidly, just like auto sales did after "cash for clunkers" expired last year.
A slow economic recovery and the possibility of a Fed policy change helped Austin mortgage rates move a little lower again this week. As a result of recent weak economic data, the Fed is reportedly considering the purchase of additional mortgage-backed securities (MBS) to replace maturing securities. These factors, along with limited inflation, make current economic conditions supportive of low Austin mortgage rates.
Today, HUD has announced their intention to make the following guideline changes for loan terms greater than 15 years. How are HUD Guidelines Changing? When Do Policy Changes Take Effect? How Will These Changes Effect Borrowers?
The bottom line is that today’s report does nothing to encourage the markets that employment is in fact improving at a faster pace. It is acknowledged that the labor market is not bleeding jobs at this time but the pace of growth needs to pick up to +200k to +300k to represent a change in the unemployment situation in the U.S.
We look to still be headed for better Austin mortgage rates. With the bounce back today, these are very nice levels.
Last week began nicely with June New Home Sales UP 23.6% to an annual rate of 330,000, well ahead of expectations. This was a sharp rebound from May when New Home Sales sank to record lows not seen since 1963. This volatility of course is all about the homebuyer tax credit (requiring a contract by April 30 and a closing by June 30, now extended to September 30). Consequently, new homes sold at a 422,000 pace in April, fell to a 267,000 pace in May, then went to 330,000 in June.
For the sixth week in a row now, Austin mortgage rates have eased to all-time record lows, even during a week of pretty mixed housing data. Rates sit at the lowest point since Freddie began tracking it in 1971.
Austin mortgage borrowers are advised to stay a little on the defensive side until we get further confirmation that the market is headed back to those July highs
Daily studies, however, are still a bit skeptical of the strength. If we see a strong move above 123-24, hold on, we might be in for a ride to even lower Austin mortgage rates.
In what looks to be a repeat of yesterday, stocks [...]
