Texas Real Estate & Mortgage Market Update

Interest rate markets started early this morning with a little more selling after yesterday’s Yellen testimony that affirmed the Fed is still on track to continue its tapering at the March 18th and 19th FOMC meeting. Prior to her testimony to the House Financial Services Committee yesterday there was some concern among analysts she would come out with a different agenda than Bernanke; we are puzzled that there would be any concern since she was a direct influence and in complete agreement with Bernanke’s policy of accommodation and the current tapering. Goes to show that even the obvious can be cloudy. Yellen was widely known as a dove on accommodation, why would anyone think otherwise?

Early this morning the MBA released its weekly mortgage applications; Mortgage applications decreased 2.0% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 7, 2014.

Yellen will continue her semi-annual required testimony on Thursday at the Senate Banking Committee; the second day normally is the day after the first one.

Technicals are eroding; the 10 yr now testing the 20 and 100 day averages, the 14 day RSI weakening and sitting at 50 (neutral). On the MBS chart the 4.0 March coupon price is testing the 20, 100 and 200 day averages. With better news out of China on its trade surplus,  Yellen’s support for the stock market, her comments that the emerging markets recent turmoil is abating, and as long as stocks improve on the economic outlook, the safety move that sent rates lower is eroding. From a technical perspective, if the 10 closes above 2.76% (now 2.75%) we have to respect that rates have ended the recent rallies. 

This means that if you have not yet locked your interest rate that you should. I believe rates will only continue to increase from here. Continue to follow my BLOG for all your Texas Real Estate and Mortgage news including Houston, Spring, Conroe, Dallas, & San Antonio.