Tag Archives: Mortgage Rates

Mortgage application activity turned in December to close the year on a positive note, according to data compiled by Capital Economics.

No matter how foggy the haze is, economists typically dust off their crystal balls in December. However economic forecasts too often involve driving by looking in a rear-view mirror. Because housing is a unique expenditure--combining elements of investment and a service--it depends on a variety of elements. The biggest question mark over the housing picture, though, is the fiscal cliff and the on-again, off-again negotiations to avoid a national financial calamity.

A sharp decline in refinance applications brought overall mortgage application activity down for the week ending December 14, according to the Mortgage Bankers Association.

After rising economic growth in the third quarter, overall economic growth is expected to decline this quarter and in early 2013, according to Fannie Mae. However, the GSE anticipates further strengthening in the housing market. Economists anticipate economic growth of less than 2 percent for the first half of 2013 followed by more accelerated growth for the remainder of the year. However, while the overall economy remains dismal, Fannie's economists finds a bright spot in the housing market.

The number of homebuyers who think the price recovery will continue through 2013 has more than doubled throughout 2012.

The desire for homeownership is still strong in young renters, according to a survey released by Trulia.

Despite recent improvements in the unemployment rate and housing, the Federal Open Market Committee (FOMC) voted Wednesday to continue its program of purchasing $40 million a month of mortgage backed securities and to maintain the target Fed Funds rate at 0 to 0.25 percent. The FOMC vote was 11-1 with only Richmond Fed President Jeffery M. Lacker dissenting.

A plunge in mortgage interest rates gave lift to applications for the first week of December, according to the Mortgage Bankers Association.

Add Freddie Mac to the list of companies forecasting great things in the 2013 housing market.

Fixed mortgage rates stayed relatively calm this week as economic indicators showed improved strength.