Mortgage Time

            C-Card Headshot

Compliments of
Chae Bae
Professional Mortgage Source LLC

PHONE:
(303) 351-5500

www.fhaonline.net

chae@fhaonline.net

4380 South Syracuse Street
Suite 309
Denver, CO 80237

NMLS #170072

Events     This Week:Income     Higher

New Home     Sales Rose

Jobless     Claims Fell

Manufacturing     Up


Events     Next Week:

Mon     12/30
Pending Sales

Tues     12/31
Chicago PMI
Confidence

Thur     1/2
ISM Manuf.
Construction

Quiet Holiday Week

The mortgage market was quiet during Christmas week. The few economic reports released this week, including Durable Orders, Jobless Claims, and New Home Sales, were mostly stronger than expected. As a result, mortgage rates ended the week a little higher.

While the headline results for this week’s New Home Sales report revealed a decline from the prior month, this obscured the substantial improvement.  New Home Sales dipped slightly in November, but this was from a level in October which was revised substantially higher.  In fact, the revised October reading was the highest level since July 2008. November New Home Sales were 17% higher than one year ago. This was another in a string of recent housing market reports which provide reasons to be optimistic heading into 2014.  On December 18, the Fed announced that it will begin to scale back its bond purchases. The added demand from the Fed for mortgage-backed securities (MBS) has been a major factor helping to keep mortgage rates low, so a reduction in bond purchases is clearly negative for mortgage rates.  Considering this, it is interesting to see that mortgage rates have moved     only a little higher since the Fed announcement. In other words, the taper was almost completely priced in to mortgage rates ahead of the actual announcement. By contrast, the reaction in the stock market to the Fed statement was much larger. Investors were pleased that the Fed intends to hold the fed funds rate low until much greater labor market improvement is seen, and the Dow stock index has climbed roughly 600 points to a record high.

                           Also Notable:

  • The IMF raised its outlook for the US economy next year
  • Core PCE inflation was just 1.1% higher than one year ago
  • 10-yr Treasury yields crossed above the 3.0% level
  • The Dow stock index rose to a record high
                  Average 30 yr fixed rate:
         Last week:

+0.03%

         This week:

+0.04%

Stocks (weekly):
Dow:

16,500

+300

NASDAQ:

4,160

+75

                Week AheadThe important monthly Employment report will not be released until January 10, leaving a light week for economic data to begin the new year. Pending Home Sales will be released on Monday. Chicago PMI Manufacturing and Consumer Confidence will come out on Tuesday. ISM Manufacturing and Construction     Spending will be released on Thursday. Mortgage markets will close early on Tuesday and will be closed on Wednesday in Observance of the New Years holiday.
To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com
To learn more about the newsletter, please call 800-627-1077
All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.

This   email was sent from Chae Bae at Professional Mortgage Source LLC. To   unsubscribe, email chae@fhaonline.net.

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