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Today's Mortgage Rate Update 5/23/13 New Home Sales Prices Up 14.9%

By Mike Hendrickson

Real Estate Agent with Premier Agent Network

May 23, 2013 03:49 AM

We have alot of ecomonic information that has rattled the market! China and the Euro Zone's economies are faultering. This shook the Asian and Euro markets. It shook the U.S. market at first, but then traders realized that at least we aren't them! We are doing better. Our jobless rate improved and new housing prices and sales were up. But the Fed. threw a cold blanket on the "party" when they hinted and started to taper down asset purchases.

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What's up today!:Rates increase after Fed’s request to start tapering down asset purchases

There's been a few bright spots on the outlook for May's economic data, an outlook now led by a big decline in Jobless Claims during the May 18 sample week for the monthly employment report. With no special factors to consider, initial claims are down 23,000 in the week to a 340,000 level that is down 15,000 from the April 13 week, a comparison that matches the May sample week against the April sample week. A sample-week comparison of 4-week averages points more strongly at improvement: 339,500 vs 362,000.Growth in general activity is steady and modest so far this month in the nation's manufacturing sector based on the PMI flash which slipped fractionally to 51.9 vs a final April reading of 52.1 and the mid-month April flash reading of 52.0.Sales are rising in the new home market despite limited supply, a mix that's driving prices sharply higher. New Home Sales rose 2.3 percent in April to a 454,000 annual rate which is far above the Economist consensus for 425,000. Revisions to March and February show a very strong net gain of 45,000 from initial levels that points to much greater than expected activity in prior months.Concerned about upside risks to inflation, a number of hawks at the FOMC Meeting earlier this month were willing to begin tapering down asset purchases as early as June with one hawk calling for an immediate tapering.