Equities are rallying. The Dow Jones got the most press this week when it hit a new high of 20,000. The S&P and the Nasdaq reached new highs as well.
The Fed will meet next week, although it's not likely we'll see a policy rate increase right now. The Fed has said it will probably raise rates 3 times this year.
However, mortgage rates are influenced by bond market movement and are not controlled directly by the Fed. Current economic growth could pressure mortgage rates higher.
After 3 straight months of gains, new home sales were down slightly in December. Demand remained strong despite recent slight rate increases.
Existing home sales were also down slightly, with the decline being blamed on short inventory. Supply of previously owned homes was at a 17-year low in December.
The median price for new homes rose to $322,500, a 7% increase from December 2015. Home sales prices are expected to continue to increase in 2017.
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.