Consumer confidence moved downward last week while mortgage rates moved slightly higher. Home prices are also rising. The S&P’s Case-Schiller home price index reported last week that home prices moved up 13.3 percent on an annual basis in September. Rising home prices are a positive sign for homeowners who are underwater, but a concern for potential home buyers.
This could be a volatile week for mortgage rates. On Friday, we get the November employment numbers which will likely set the tone for rates next week. The consensus is for an increase of 180,000 jobs in November with a decrease in the unemployment rate to 7.2 percent; down from 7.3 percent in October. After the recent economic improvements, another round of positive news in the labor market is likely to push rates upward. In addition, the markets are trying to predict what the Fed will do next at its upcoming December meeting in two weeks. Any upward movement in economic data may increase the chances the Fed will begin tapering after its December meeting.
This column takes a look at current mortgage rates, market trends and indexes. Jon Lamkin is Vice President of Mortgage Lending for Guaranteed Rate, 322 Route 46 W Suite 170 • Parsippany, NJ • 07054. He may be reached at 973.939.8661 / firstname.lastname@example.org / www.guaranteedrate.com/jonlamkin
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