Economic News…for the week revolved around the housing market. The Housing Market Index (released by the National Association of Home Builders) handily beat expectations. The index has risen for the fourth consecutive month and is at a four plus year high. Housing Starts, while less than expected, were led lower by the volatile multi-family component. The single family home sector rose by 4.4%. Existing Home Sales continued the positive news rising 5% in December. Inflation reports were subdued and Weekly Jobless Claims were down dramatically. It’s certainly nice to have a week where the news was good and the European debt and banking issues did not dominate the headlines.
Mortgage Markets: Treasuries and Mortgage Backed Securities have taken moderate losses for the week in the face of stronger economic news. The 10 Year Note is closed trading around 2.030% which is up from last Friday’s closing yield of 1.869%.
Next Week’s Reports: Wednesday: Pending Home Sales Index, FOMC Meeting Announcement Thursday: Durable Goods Orders, Jobless Claims, New Home Sales Friday: GDP, Consumer Sentiment
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.