From Stuart Crawford at V.I.P. Mortgage, Inc.,
"Positive economic data was the primary influence on mortgage rates last week. Remember, “good news” for the economy translates into “bad news” for mortgage rates. Unexpected strength in Retail Sales, Housing Starts, and Jobless Claims combined to push mortgage rates a little higher at the end of the week.
Stronger economic growth is great for the labor market and the stock market. Unfortunately, it also increases the risk that future inflation will move higher, so it is generally not good for mortgage rates. Although, two factors helped contain the increase in mortgage rates last week. First, the inflation data released showed that inflation is not a problem right now. In addition, Fed purchases of mortgage-backed securities (MBS) provided sufficient demand to keep mortgage rates at low levels.
The Housing data released during the week continued to be encouraging. December Housing Starts jumped 12%, well above the consensus forecast, to the highest level since June 2008. Building Permits increased 1%, and the January NAHB Home Builder Confidence index remained at the highest level since 2006. The Fed's Beige Book reported improving real estate conditions in all twelve regions."
Stuart can be reached at 602.710.8975.
In the Villages at Aviano, the Lucca model in building 14, unit 1190, sold for $254K using a conventional loan. This was a short sale listed in mls 10.16.12 and closed 1.20.13. Built in 2007 with 1795 sq ft, 2/2 and a big 2 car garage.