Existing home sales for October dipped 3.2 percent last week, and the National Association of Home Builders also reported a decline in their Housing Market Index.
Clearly the recent run-up in mortgage rates is having some impact on the housing recovery, which is still better than it was a year ago.
The Fed will be looking closely at reports like these that come out before the end of the year as they weigh the decision to “taper” the bond-buying program that has been keeping interest rates low.
Bottom Line for Mortgages
Mortgage rates ticked up last week after the Fed released the minutes of their last meeting. Those minutes renewed fears about tapering.