Mortgage markets improved this week as positive economic data was overshadowed by geopolitical strife. A flight-to-quality drove buy-side activity in mortgage bond markets, which, in turn, helped conforming rates fall.
Monthly Archive: January 2011
Sales of new homes rose sharply in December, posting a 17.5 percent gain from the month prior. According to the Department of Housing and Urban Development, New Home Sales climbed to 329,000 in December, besting November by close to 50,000 units on a seasonally-adjusted annual basis. Last month’s reading is an 8-month high for New Home Sales, and…
Today, the Federal Open Market Committee voted 10-to-0 to leave the Fed Funds Rate unchanged within its target range of 0.000-0.250 percent. In its press release, the FOMC noted that since December’s meeting, economic growth is ongoing, but at a pace deemed “insufficient” to make a material impact on the jobs market. In addition…
Home values were reported unchanged in November 2010, on average, according to the Federal Home Finance Agency’s Home Price Index. We say “on average” because the government’s Home Price Index is a data composite for the country. The index doesn’t measure citywide changes in places like Boise, however values in the “Mountain” region fell -1.9%. (Click on the link to read the complete story!)
The Federal Open Market Committee begins a 2-day meeting today in Washington D.C. It’s the group’s first meeting of 2011 — one of 8 scheduled for the year.
Mortgage markets worsened last week in a holiday-shortened trading week. For the second straight week, conforming and FHA mortgage rates increased.
According to the National Association of REALTORSÂ®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It’s the 3rd straight month of home resale improvement nationwide.
According to theCensus Bureau’s report, Housing Starts of single-family homes fell to 417,000 units on a seasonally-adjusted, annual basis. The figure marks a 9 percent drop-off from November, and is the lowest reading since May 2009.
Homebuilder confidence held firm for the second straight month this month, according to the National Association of Home Builders.
RATS! Mortgage markets worsened late last week on a turn-around in sentiment across the Eurozone. The sort of “safe haven” buying that had buoyed mortgage bonds since the New Year dissipated, and mortgage rates resumed climbing. Last week marked the first week since the end of 2010 that mortgage rates have risen, breaking a 2-and-a-half-week rally.