Mortgage Rates Edged Higher, Dow Jones Industrial Average hit 20,000 mark, Home Prices edged higher in November

January 25, 2017

Mortgage rates edged higher in the latest week as Bond yields rose after investors pulled investing dollars out of the Bond markets and into riskier assets, such as Stocks. The Mortgage Bankers Association reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to 4.35% from 4.27%. Within the report it showed that the Market Composite Index, a measure of total mortgage loan application volume, rose 4% in the latest week.

The Dow Jones Industrial Average hit the 20,000 mark for the first time in its 131-year history on Wednesday as the Trump rally resumes after a brief halt in early to mid-January. The rally resumed after President Trump signed numerous executive orders, which included construction of two oil pipelines, which lifted the energy sector and spread to the broader markets. The Nasdaq and the S&P also hit record highs in Wednesday’s trading session.

Home prices edged higher in November as reported by the Federal Housing Finance Agency (FHFA). The FHFA reported that prices rose 0.5% from October to November, with a 6.1% annual increase from November 2015 to November 2016. Overall prices are now more than 6.0% above the 2011 low point seen following the Great Recession. Prices were up in six of the divisions with the biggest increase seen in the Pacific region with a gain of 1.5%.