Mortgage rates spike but are back to the 1 yr average

Following the selloff in treasuries and MBS, said last night that the average 30 yr fixed mortgage rate rose 9 bps in a day to 5.2% and is up from 5.06% on Friday. It’s the biggest one day upward move in 2 months. The MBA said mortgage apps were down 10.7% with refi’s lower by 10.1% and purchases down by 11.6% but the numbers typically fall in the last few weeks of the year and the data is for the week ended Friday so also doesn’t reflect the two day rise in rates. ABC confidence rose 3 pts to -42, the highest since May and is up at just the right time in terms of holiday sales. The gain was led by the Buying Climate which measures whether its a good time to buy something. Chinese stocks bounced off its 6 week low following a sharp rally in India after their finance minister made optimistic comments about growth for 2010. Income, spending, confidence and new home sales highlight the data of the day.

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