Holiday economic and rate update
Question of the week: No question this week.
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The third and final revision to 3rd quarter GDP showed the economy grew at a 3.2% pace, a lot stronger than the original estimate of 2.6%, and last months revision to 2.9%. Part of the adjustment was an upward revision to consumer spending estimates, up from 1.7% original estimate to 2.3%. The primary factor in the large adjustment however, was the drop in the trade deficit. The news is not mortgage rate friendly as a more robust economy calls for higher rates than a slowing economy.
Putting more upward pressure on rates was the 0.4% increase in disposable income in November, outpacing inflation. While incomes were up significantly, consumer spending was scarcely higher, up 0.1% in November. The drag on spending was due to consumers spending more on services and less on goods, particularly new cars and trucks.
Rates for Friday December 23, 2022: Rates bounced back up this Friday from last, some of the bounce on economic news, and some due to investors getting out of investments for end of year cash/portfolio management and partially due to long holiday weekend.
FIXED RATE MORTGAGES AT COST OF 1.25 POINTS LOCKED FOR 45 DAYS FOR PURCHASE TRANSACTIONS:
30-year conforming 6.00% Up 0.25%
30-year high-balance conforming 6.625% Up 0.25%
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down with 740 FICO score for purchase mortgages.
I hope those who celebrate Hannukah have had a wonderful celebration with family and friends. For those celebrating Christmas, I have the same hope. My wish for all is as much of those family and friends as you desire!
Have a great week,
Dennis
Past Weekly Rate & Market Updates can be found on my blog page at my website www.DennisCSmith.com/my-blog
