Consumer sentiment dips going into holidays (Reuters)
Reuters - U.S. consumer sentiment slipped in December but was not far from the year's highs, a report said on Friday, suggesting Americans were guardedly optimistic about the economy in the holiday season.
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30-year mortgages dip to lowest level since April (AP)
2008.09.11By MARTIN CRUTSINGER, AP Economics Writer 14 minutes ago
WASHINGTON - Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months, as the government's dramatic takeover of mortgage giants Fannie Mae and Freddie Mac had the hoped-for impact of lowering mortgage rates.
Freddie Mac reported Thursday that its nationwide survey found that 30-year, fixed-rate mortgages dipped to 5.93 percent this week, down from 6.35 percent last week.
The sharp decline pushed the 30-year rate below 6 percent for the first time since late May and marked the lowest level for this rate since they averaged 5.88 percent the week of April 17.
Private economists had predicted that the government's move on Sunday to take control of Fannie Mae and Freddie Mac would result in lower mortgage rates for consumers because it removed a huge uncertainty about the future of the two firms, which own or guarantee half of the nation's mortgages.
Mark Zandi, chief economist at Moody's Economy.com, said Thursday that he believed rates could keep falling and perhaps drop to around 5.5 percent on the 30-year mortgage, which would give a further boost to the battered housing market.
"This is the most significant positive benefit of the government takeover of Fannie and Freddie," Zandi said. "I think it is important that rates have fallen below the key 6 percent benchmark and hopefully rates will move lower in coming weeks."
The 30-year mortgage hit a high for this year at 6.63 percent on July 24 and had been above 6 percent since late May.
The Freddie Mac survey showed that other mortgage rates declined this week although one-year rates bucked the downward trend.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 5.54 percent, down from 5.90 percent last week.
Rates on five-year, adjustable-rate mortgages averaged 5.87 percent this week, down from 5.97 percent last week.
One-year, adjustable-rate mortgages edged up to 5.21 percent, compared to 5.15 percent last week.
The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and five-year mortgages averaged 0.7 point last week. The nationwide fee for one-year mortgages averaged 0.6 point this week.
A year ago, rates on 30-year mortgages stood at 6.31 percent, 15-year mortgage rates averaged 5.97 percent, five-year adjustable-rate mortgages were at 6.17 percent and one-year adjustable-rate mortgages stood at 5.66 percent.
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November housing starts up (Reuters)
Reuters - The pace of U.S. home building rose in November as new home starts climbed 6.7 percent, rebounding from a sharp decline in October while building permits fell 3 percent, a government report showed on Tuesday.
Reuters - The pace of U.S. home building rose in November as new home starts climbed 6.7 percent, rebounding from a sharp decline in October while building permits fell 3 percent, a government report showed on Tuesday.
US GDP revised down to show 2.0 percent growth pace (AFP)
AFP - US economic growth has been a bit more sluggish than earlier estimated in the third quarter, growing at a 2.0 percent annualized pace, according to revised data.
AFP - US economic growth has been a bit more sluggish than earlier estimated in the third quarter, growing at a 2.0 percent annualized pace, according to revised data.
Consumers boost buying during holidays (AP)
AP - Keeping the nation's cash registers ringing, consumers boosted their spending in November by the largest amount in four months, raising hopes shoppers will act more like Santas than Scrooges during the holidays.
AP - Keeping the nation's cash registers ringing, consumers boosted their spending in November by the largest amount in four months, raising hopes shoppers will act more like Santas than Scrooges during the holidays.
Consumer confidence ebbs, boosts rate hopes (Reuters)
Reuters - U.S. consumer confidence ebbed in December, while a key measure of inflation held steady in November for first time in four years, boosting the chances of Federal Reserve interest rate cuts in 2007.
Reuters - U.S. consumer confidence ebbed in December, while a key measure of inflation held steady in November for first time in four years, boosting the chances of Federal Reserve interest rate cuts in 2007.
