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Gold Canyon Mortgage Blog
A man who illegally demolished a San Francisco house designed by modernist architect Richard Neutra was ordered this week to rebuild it exactly as it was.
Johnston purchased the 1936 residence, known as the Largent House, in 2017 for $1.7 million.
What Happened to Rates Last Week?
Mortgage backed securities (FNMA 4.50 MBS) gained +19 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move slightly lower compared to the previous week.
Inflation Nation: The Fed's main inflation gauge Personal Consumption Expenditures (PCE) for November YOY matched expectations with a 1.8% reading which is back below the 2.0% pace in October. The Core (ex food and energy) YOY matched expectations with a 1.9% rate but that was an increase over October's pace of 1.8%. Spending was way up. Personal Spending MOM hit 0.4% vs est of 0.3%, however October was revised upward significantly from 0.6% to 0.8%. Personal Income looked flat but did see a small 0.1% gain.
Central Bank Palooza: Russia raised their rates 1/4 point, the U.S. raised their rates 1/4 point. Japan (number 3 economy), kept their main interest rate at -0.1% and Great Brittan (number 5 economy), kept their main interest rate at 0.75%.
What to Watch Out For This Week:
The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises.
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.