California Foreclosure Rates Drop

Mortgage Rates rise big time today

Freddie Mac reported today interest rates on fixed mortgages jumped big time, lenders are offering the 30-year home loan at 3.625%, up from  yesterday’s rate at 3.42% and 3.38% last week.  The rate for a 15-year fixed mortgage today is 2.875%,  up from yesterday’s rate at 2.71%, and  2.66% last week.

Interest rates have been near all-time record lows for months now, but with today’s rates it seems to be clear the economy its gaining momentum and the determining factors of an increase or decrease in rates point to economic uncertainty.  In the coming months, we will be able to see if the economy is picking up steam or not as the government deals with fiscal cliffs, debt ceilings and increased tax rates.  Until stable economic certainty is reached, rates will continue to fluctuate week to week.  

 As we progress into 2013, the number of foreclosures in California continues to decline pointing to signs the economy is improving.  Home values will continue to increase at a steady rate which means fewer homes are underwater.  The decline in foreclosures in California is boasting home values and has contributed to the overall progress of the housing market recovery.  Banks have turned to short sales and other kinds of loan plans for the borrowers who cannot make their mortgage payments.  The percentage of notices of default and trustees deeds filed on California properties has also declined dramatically in 2012 and continues in 2013.  Currently, notices of default in California have dropped to the lowest levels since the 4^th quarter of 2006.  Nationwide, the percentage of foreclosures have also dropped however, the percentage of buyers behind their payments have slightly increased.

This week will be packed with major economic news. The biggest story will be Wednesday's Fed meeting, as investors watch for hints about the duration of the Fed's bond-buying program.  The biggest economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month.  Before the employment data, Durable Orders and Pending Home Sales will be released on Monday.  Fourth quarter GDP will come out on Wednesday.  Personal Income, Core PCE inflation, and Chicago PMI will be released on Thursday.  ISM Manufacturing and Construction Spending are scheduled for Friday.  In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday.