Mortgage Rate Trends & Enconomic News For December 2007
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Key Dates This Month For Economic News
December Mortgage Rate Trends The November report for existing home sales did not indicate that the real estate market was recovering. Home sale prices continued to decline, existing sales were up .4%. The bond market is rallying on the news. The CPI report came in well above expectations. Core inflation for the month of November rose over .8% . Sharp increses in gasoline and appare were the main drivers. This is bad news for mortgage rates as the yield on mortgage bonds is moving up. The PPI report came in smoking hot. The increase in reported inflation for wholesale goods rose over 3.2% last month the largest jump in the 30 year + reported history, this is not good news for mortgage rates. Retail sales rose a modest 1.2% for the month of November, ahead of many economic predictions. The FOMC decided to lower the fed funds rate down to 4.25 on December 11th. This is the third consecutive rate decrease in 2007. There is still a concern about inflation, but the overall economy has slowed down due to the housing market. Mortgage rates are trending down on the news. The November jobs report came in slightly above expectations with over 93,000 jobs being created for the month. Mortgage rates will move up on the news and the ten year mortgage bond move over 4%.
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