There was quite a bit of positive economic news last week:
1) Third Quarter GDP up 3.6%
2) Home prices, including distressed sales, up 12.5% in October, according to CoreLogic
3) More than 200,000 jobs added in November, higher than expected.
Bottom Line for Mortgages
Is all this good news enough to convince the Fed to begin “tapering” their bond-buying program? We will get an indication of how they’re leaning during next week’s Fed Open Market Committee meeting Dec. 17th and 18th.
Any indication that they will start slowing their bond purchases could push mortgage rates higher. However, rates stayed flat to end the week.