The outlook for the U.S. economy improved last week, taking the mortgage bond market with it. For the first time this year, conforming mortgage rates rose throughout California from one week to the next.
Data was strong across all categories last week.
- Home Resales :Existing Home Sales rose 5%
- New Homes : Single-Family Housing Starts rose 4%
- Builders : Home Builder Confidence rose to a 5-year high
- Jobs : Jobless claims fell to lowest level since April 2008
- Inflation : CPI remained in balance Continue reading
Mortgage markets improved last week, pushing mortgage rates in Northern California lower for the second straight week. Conforming fixed and adjustable-rate mortgage cut new, all-time lows, and FHA mortgage rates did the same.
Mortgage rates improved last week during a holiday-shortened trading week. The mortgage bond markets closed Monday for Christmas, and closed early Friday afternoon. Trading volume was light all week-long, which contributed to a year-end rally.
Mortgage markets worsened last week on renewed optimism in the european economy, more evidence of a U.S. economic recovery, and ongoing strength in housing.