Holiday Traditions…

  • December 24, 2013

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This time of year is full of holiday traditions. Christmas trees, menorahs, or a trip to a bowl game; it’s about spending time together as a family. The bond market has a holiday tradition too – market volatility. ‘Tis the season. Weak trading volume makes the market more volatile and that means rates tend to jump around.  It happens every year… a tradition.

  • Mortgage rates increased today, but with the market closed tomorrow mortgage rates should remain stable.
  • Durable goods orders were released this morning. It beat economists’ forecasts. Why does this matter? Good news for the economy usually means bad news for the mortgage bond market. Interest rates increased by about 1/8% in rate.
  • New single family home sales stayed strong in November according to a report released today. Sales in the northeast increased 15.2 percent, while the Midwest was down 26.6 percent month over month. Looks like snow is not good for home sales.
  • Mortgage applications continue to fall, decreasing another 6.3% this week. This measure the volume of applications for both purchases and refinances. This may suggest the housing market is showing signs of weakness, but there is typically a substantial dip in late December.

We will be back in action on Thursday. Have a great holiday. Merry Christmas!

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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