The University of Michigan’s Consumer Sentiment Index was improved for December at 82.5, after the November reading was adjusted from 82.5 to 75. Analysts noted that consumers were relieved when legislative gridlock ended.
Durable goods orders reached their highest level since May with November’s reading of + 3.5 percent. Without the volatile transportation sector, the reading for November was +1.2 percent.
This could be a sign of economic recovery for manufacturing, as more orders are being placed. Economists expected an overall increase of 2.0 percent for overall durable goods orders.
The U.S. Commerce Department provided housing markets with good news with its New Home Sales report for November. 464,000 new homes were sold in November against expectations of 440,000 new homes sold.
This expectation was based on the original reading of 444,000 new homes sold in October, which has been revised to 474,000 new homes sold. The latest reading for October is the highest since July of 2008.
While rising mortgage rates slowed home purchases during the summer, analysts note that home buyers seem to be adjusting for higher mortgage rates by purchasing smaller homes in less costly areas.
Home Builder Confidence recently achieved its highest reading since 2005, a further indication of overall economic recovery and housing markets in particular.
After Wednesday’s holiday, the Weekly Jobless Claims report came in with a reading of 338,000 new jobless claims filed. This reading was lower than expectations of 345,000 new jobless claims and significantly lower than the previous week’s report of 380,000 new jobless claims.
This was the largest decrease in new jobless claims since the week of November 17, 2012. After seasonal volatility associated with the holidays, analysts expect new jobless claims to decrease at a slower rate in early 2014,
Freddie Mac released its Primary Mortgage Market Survey on Thursday. Although some economic analysts had expected a jump in mortgage rates after the Fed announced its plan to begin tapering its monthly securities purchases in January, mortgage rates showed little change.
The average rate for a 30-year fixed rate mortgage rose by one basis point to 4.48 percent with discount points unchanged at 0.70 percent. Average 15-year mortgage rates also rose by one basis point to 3.52 with discount points moving up from 0.60 to 0.70 percent.
The average rate for a 5/1 adjustable rate mortgage rose by 4.00 basis points to 3.00 percent, with discount points unchanged at 0.40 percent.
2014 shows promise of a steady economic improvements, and given the latest New Home Sales report, it’s possible that improving housing markets will continue leading the way.
As with last week, this week’s schedule of economic events is reduced due to the New Year holiday. Pending home sales for November will be released Monday, Tuesday’s economic reports include The Case/Shiller Housing Market Indices and the Consumer Confidence report.
After the holiday on Wednesday, Thursday’s scheduled reports include the Weekly Jobless Claims and Freddie Mac PMMS on mortgage rates. Construction Spending will also be released. There is no housing or mortgage-related economic reports set for release on Friday.
Leave a Reply