Current Mortgage Rates for Tuesday, December 30, 2014

Yesterday mortgage backed securities gained a little ground, and we’re seeing a continuation of that rally this morning.  If the rally is sustained throughout the session, MBS pricing will be as good or better than it was prior to the last Fed meeting on December 15th (which prompted a rise in rates). On a day-to-day basis, we’ve seen a fair amount of fluctuation in mortgage rates, but on average rates have been generally stable since the beginning of the month.

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Today’s Economic Data:

Today’s data is not especially influential, but it’s what we have to talk about today.  First up is the S&P/Case-Shiller Home Price Index for October.  The numbers came in pretty much in line with expectations.  Home prices (Not Seasonally Adjusted) were up +4.5% over last year.  The pace of home price increases continues to slow.  It’s always worth mentioning that this index is a three-month moving average that is reported on a two lag.

The other piece of data issued this morning was Consumer Confidence for December.  The index showed a reading of 92.6, just slightly missing expectations, but up from November’s reading of 91. Perhaps somewhat promisingly, those surveyed who said that jobs were “plentiful” increased, while those saying that jobs were “hard to get” decreased.  On the other hand, those anticipating fewer jobs in the future increased, while those expecting more jobs in the coming months decreased. Somewhat of a mixed report.

As I mentioned yesterday, holiday weeks tend to lead to low volume, and illiquidity in the market. As a result, we need to take any market moves with a grain of salt, and bear in mind that any big swings have a tend to reverse themselves after the holidays.  We’re not seeing anything like that right now, but it’s something you should be aware of if you’re in the process of getting a mortgage but have yet to lock your mortgage rate.

Right now, mortgage rates are close to as favorable as they have been since the beginning of the month.
This Week’s Significant Economic Data:

Monday:

• Dallas Fed Manufacturing Survey: Expected: 9.5, actual: 4.1.

Tuesday:

• S&P/Case-Shiller Home Price Index: 20-city Not Seasonally Adjusted month-over-month: Expected: -0.2%, actual: -0.1%.  Year-over-year Expected: +4.5%, actual: +4.5%.
• Consumer Confidence:

Wednesday:

• Weekly Jobless Claims:
• Chicago PMI

Thursday:

• Markets Closed New Year’s

Friday:

• PMI Manufacturing Index:
• ISM Manufacturing Index:

source:  totalmortgage.com