• Mortgage Rates Rise, Markets End Year on Dour Note

    Mortgage Rates Rise

    Homebuyers hoping long-term mortgage rates would keep falling didn’t catch a break in the final week of the year.

    The 30-year fixed rate bounced up after declining through November, rising to 6.42% from 6.27% from the previous week, according to Freddie Mac’s latest mortgage market survey. A year ago, the rate was at 3.11%.

    The 15-year fixed rate mortgage edged lower to 5.68%, a .01 percentage point drop. That rate was 2.33% a year ago.

    “The housing market remains in the doldrums with declining sales, inventory and prices,” said Sam Khater, Freddie Mac’s chief economist, said in a statement.

    New and existing home sales declined for most of the year as interest rates spiked. Growth in home prices slowed throughout the year as well and weakness is expected to spill into the new year.

    Markets End Year on Dour Note

    U.S. stock markets closed 2022 with their worst year since the Great Financial Crisis.

    The Dow Jones index had been 300 or more points in the red throughout the last trading day of 2022 but managed to narrow to 73 points negative, finishing the year down 8.6% for the worst decline since 2008.

    But it didn’t suffer as badly as the S&P 500 and the Nasdaq Composite. The S&P dropped 19.2% while the Nasdaq, made up of mostly technology stocks, shed 33%.

    Tech companies that saw their stocks soar during the early days of the pandemic as people did more online started feeling the pinch once consumers began getting out more. Essentially, consumers reverted to pandemic behaviors from before the pandemic, filling restaurants and retail stores. The companies, though, have been shedding employees and office space.

    Source: www.CoStar.com