Rate Update

Mortgage rates held steady during the holiday-shortened week thanks to light trading and mixed economic data. There were some encouraging signs of improvement with Initial Jobless Claims dropping to their lowest level since July 2008, at 407,000 for the week ending November 20. We also had Consumer Sentiment reach the highest level since June. Residential real estate, however, continues to weigh down the economic recovery with Existing Home Sales dropping 2.2% in October from the month prior, and sales falling 25.9% year-over-year. Distressed homes accounted for 34% of all sales. Median home prices fell 0.9% from a year ago. Home inventories decreased slightly to a 10.5 month supply, but are still at a high level and up 8.4% year-over-year. Currently, the 30 Year Fixed is 4.125% (4.267% APR) and the 15 Year Fixed is 3.375% (3.623% APR) This will be another busy week with the S&P/Case-Shiller Home Price Index, Consumer Confidence, Construction Spending, ISM manufacturing data, Beige Book, Jobless Claims, Pending Home Sales, and unemployment data.