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| | December 24, 2012 | |
| | Hello Brad,
The end of the year is a great time to review your business. As 2012 winds down, it's important to assess the results and make the right adjustments going forward.
In today's competitive market, teamwork can play a major role in long-term success. It would be a pleasure to help.
Sincerely,
Curt and Shannon
curt.dalpiaz@AcademyMortgage.com
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Fiscal Cliff Talks Drive Mortgage Rates | | Highlights | Average 30 yr fixed rate | Stocks (Weekly) | | 
| Third quarter GDP was revised higher to 3.1% from a prior reading of 2.7% |
| Core PCE inflation was just 1.5% higher than one year ago |
| Oil prices rose above $90 per barrel for the first time since mid-October |
| S&P upgraded the sovereign debt of Greece due to EU aid |
| | Week of 12/21: -0.01% | | Dow: 13,100 -50 | | | | Week of 12/14: +0.05% | | NASDAQ: 3,000 +25 | | 
| | The fiscal cliff talks were the primary influence on mortgage rates last week. As investor optimism for a deal rose and fell during the week, so did mortgage rates. For the week, mortgage rates ended just a little lower.
If no fiscal cliff deal is reached, the spending cuts and tax increases which will occur beginning January 1 are perceived as negative for stocks and positive for bonds. As a result, when comments from political leaders at the beginning of the week hinted at progress, mortgage rates moved higher and stocks gained. The reverse took place later in the week and especially on Friday following the failure in the House to pass the 'Plan B' fiscal cliff proposal. The fiscal cliff talks most likely will continue to have a major impact on mortgage rates until a deal is reached.
The housing sector data released last week was encouraging. November Existing Home Sales rose 6% to the highest level since November 2009. Total housing inventory of available existing homes declined 4% to the lowest level since September 2005. November Housing Starts declined 3%, but Building Permits increased 4% to the highest level since July 2008. The December NAHB Home Builder Confidence index rose for the eighth consecutive month to the highest level since April 2006. | |
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Investors will be mostly focused on the fiscal cliff talks this week. It will be a light week for economic data. New Home Sales and Consumer Confidence will come out on Thursday. Chicago PMI Manufacturing and Pending Home Sales will be released on Friday. Mortgage markets will close early on Monday and will be closed on Tuesday.
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The market commentary material provided is from a third party vendor, MBSQuoteline, and is not necessarily the opinions of the sender or the organization they represent. This information is intended for educational purposes only and should not be construed as investment and/or mortgage advice. Additionally, the material is deemed to be accurate and reliable, but there is no guarantee it is without error. |
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