Mortgage and Market Update
Economic News: 2012 is rolling to an end and the news for this week was not “Naughty” but “Nice”. The Housing Market Index reported its 8th straight monthly gain and builders reported the best conditions in five years. Housing Starts were revised lower for the previous two months but that news certainly seems to be offset by the sentiment of home builders. Existing Home Sales were up 5.9% with supply dwindling again. Third Quarter Gross Domestic Product was revised upward to an annualized rate of 3.1% from the expected 2.7%. Keep an eye on Consumer Sentiment as it continues to decline in the face of the “Fiscal Cliff” we may be headed over. Lastly, median home prices in California rose for the 8th straight month to levels last seen in August of 2008.
Mortgage Markets: Treasuries and Mortgage Backed Securities are bouncing back from multi-month highs experienced on Tuesday. The “Fiscal Cliff” debate is having an effect on the equity markets today causing money to move into bonds. The 10 Year Note is currently trading at 1.761%.
Next Week’s Reports: Wednesday: S&P Case-Shiller Home Price Index Thursday: Jobless Claims, New Home Sales, Consumer Confidence Friday: Pending Home Sales Index
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.