Mortgage Rates Continue to Climb; Anticipation Mounts for December's Employment Data
January 4, 2010 - Last week saw mortgage rates start the week moving upward but level off as the week progressed. While we've seen rates climbing for four weeks, rates are still at historically low levels, and will likely remain at low levels as we start off 2010.With the employment picture showing signs of stabilizing, home affordability remain very attractive.
Consumer confidence hit a new two-year high last week with a reading of 52.9 for December. Coming up from a revised 50.6 in November, it appears that the economy is solidifying the early stages of recovery. Any confidence reading over 50 indicates more people are positive than negative on future economic prospects. Along with the consumer confidence report, October's Case-Shiller Price Index, which follows home sales in 20 major cities, rose for the fifth consecutive month and brought out a seasonally adjusted rise of 0.4%.
While most experts agree that mortgage rates will rise in 2010, the first week of the year may not see much movement until Friday, when December's employment data is released. Recovery in employment, along with a sustained recovery in housing, are the two most important factors in returning the economy back to health. If zero jobs were lost or if jobs were created in December, mortgage rates will end the week on an upward climb that will very likely extend into next week.