Texas Real Estate Mortgage Rate Update

Early this morning, prior to 8:30 the 10 yr note at 2.84%, 30 yr MBS prices started +15 bp frm yesterday’s close. There had been no movement in the bond and mortgage markets the last six days; not completely unusual but it is rare that the bond market for the last six sessions had not changed. That has changed dramatically; at 9:30 the 10 yr at 2.82% and 30 yr MBS prices +34 bps.  More evidence that the Fed will announce another tapering next week.

So far no economic reports this week until 8:30 this morning; weekly jobless claims were expected up 4K, as reported +1K from last week that was revised from 326K to 325K. Weekly claims this time of the year and with the very cold weather have seen little change. Looking for something to get their teeth into traders were left sucking their thumbs. Unemployment benefits held near a six-week low, showing firings remain muted following the holidays. The four-week average of claims, a less-volatile measure than the weekly figure, declined to 331,500 from 335,250 in the prior week. The reaction was muted but the 10 did fall to 2.83%.

According to the FHFA, home prices rose a modest 0.1% on a seasonally adjust basis in Nov, following a 0.5% rise the prior month; The housing market may be losing some momentum. Yr/yr prices up 7.6%.

At 10:00 Dec existing home sales were widely thought to be unchanged FRM Nov; as reported sales were up 1.0% due to Nov being revised lower, from 4.90 mil to 4.82%. Sales in Dec were 4.87 mil annualized. The median sales price $198K, prices for 2013 +9.9%. Sales in 2013 totaled 5.9 mil; based on Dec sales there is a 4.6 month supply of existing home sales.

We have been noting that technicals were holding slight bullish biases; the 10 yr locked in a narrow 4 bp range between 2.86% and 2.82%, yesterday ending at 2.86%. This morning with the big stock market decline the 10 yr at 10:00 at 2.81% -5 bp and 30 yr MBS's +41 bps. It is all about the stock market this morning; the 10 yr still has solid resistance at 2.80% but it is a little encouraging that the note is below 2.82% a new low going back to early Dec. Not a big move but if 2.80% gives way look for more improvement in the rate markets. 

I am suggesting to float your rate until next week in hopes that we will have some more downward movements. Follow my blog for up do date news related to the real estate and mortgage industry in Texas.