Mortgage bond prices finished the week lower which put upward pressure on rates. Trading was quiet the first portion of the week. Stocks surged higher the latter portion of the week as the DOW hit record levels. Housing prices continued to rise according to both the Federal Housing Finance Agency (FHFA) and the Case Shiller releases. Low inventories coupled with low interest rates are two reasons cited for the year over year rise in prices. Consumer confidence was stronger than expected. Revised GDP rose 3.3% versus the expected 3% reading. This figure moved in the right direction but many analysts still want to see higher GDP figures with so much support from the Federal Reserve. Core PCE inflation rose 0.2% as expected. ISM index was 58.2 as expected. We ended the week worse by 1/4 of a discount point.
Information provided by: The Brannon Group / NOVA Home Loans