Monday, November 18, 2013 - Article by: Linda Miller - Supreme Lending -
Mortgage rates moved noticeably lower to begin the week. That mirrors the stock market which closed at record highs, as all three primary indexes posted gains in excess of 1%. The Dow Jones industrial average closed just under 16,000 while the S&P 500 closed just below 1,800, and the Nasdaq closed at nearly 4,000. Levels this high have not been reached since September 2000. After six weeks of consecutive gains, it is believed by some that stocks will continue to see gains in the short term.
Rates and the market went in the right direction following an announcement from Janet Yellen, Federal Reserve chair nominee, of plans to delay the tapering of Treasury purchases and mortgage-backed securities until stronger signs indicate economic improvement, housing-related stocks are still posting high.
Also reported last week by the Department of Labor, as of November 9, jobless claims dropped to 339,000 applications, compared to the previous week's report of 341,000 claims.
News this week from the National Association of Home Builders as of this week offers an updated report of U.S. homebuilder confidence, which stabilized in November, coming in at 54. This follows early-month predictions by economists that November would show a 55 reading.
Homebuilder confidence had fallen for two straight months prior to November, with October showing a reading of 54. Assumptions around the November sentiment note pressure caused by rising construction costs and low appraisals, as well as consumer hesitancy related to uncertainty of the expected timing of Congress' decision to taper stimulus spending.
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