A short but eventful Thanksgiving Week sent mortgage rates smashing through the record lows set in April. Strong demand for treasury auctions, low inflation and slower economic growth contributed to the record low rates. The Fed said the economy grew at a slower rate than previously expected in the 3rd quarter, revising GDP down to 2.8% from 3.5%. The news was not all bad as housing data exceeded expectations with Existing Home Sales, which make up more than 90% of the market, jumping 10% in October to the highest level since October 2007, and New Home Sales came in at the fastest pace since September 2008. Consumer Spending increased 0.7% in October, and preliminary data from Black Friday shows sales were up 0.5% from last year. Currently, the RECORD LOW 30 Year Fixed sits at 4.375% (4.554% APR) and the RECORD LOW 15 Year Fixed is at 4.000% (4.307% APR). Next week we will see the latest unemployment data along with Construction Spending and Pending Home Sales.
Central Coast Lending, Inc.