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New Home Sales Rise – Fastest Pace in Five Months:

New single-family home sales rose in October and the supply of homes on the market fell to its lowest level since April of last year, showing some healing in the housing sector.

The Commerce Department reported on Monday that sales edged up 1.3 percent to a seasonally adjusted 307,000-unit annual rate, which was the fastest pace in five months.
The supply of new homes in the market would last 6.3 months at the current pace of sales.
This report follows the trend set by last week’s gain of 1.3% for Existing Home Sales.  Both market segments continue to perform better than analysts’ expectations and show some much needed strength in the housing market.

What Happened to Rates Last Week:

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Mortgage backed securities (MBS) lost only -4 basis points from last Friday to the prior Friday which moved mortgage rates sideways. 

This was the second straight week where mortgage rates remained in a very narrow range.
We had very successful 2, 5 and 7 year Treasury auctions as foreign investors snapped up our debt.
The U.S economy continued to receive positive economic news as Initial Jobless Claims came in below 400K for the third week in a row and Consumer Sentiment had its highest reading in the last several months.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week.  They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.  I will be watching these reports closely for you and let you know if there are any big surprises:

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It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.

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Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com

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