U.S. Consumer Sentiment rose more than expected in early December while an index of current conditions jumped to its highest level since January 2008, a survey released on Friday showed. Housing demand is directly correlated with consumer sentiment so an increase in this reading is definitely a boon for housing.
The Reuters/University of Michigan’s Consumer Sentiment Index rose to 74.2 which is the best reading since June. At the same time, the survey’s barometer of current economic conditions rose to 85.7, which is the best reading since January 2008.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) lost -189 basis points last week causing 30 year fixed rates to increase from the previous week. This marks the fifth straight week of increasing mortgage rates. This further proves that you should not listen to news reports about mortgage rates. The U.S. government cannot and does not control mortgage rates. These are set by an open market place of willing sellers and purchasers of MBS. And as our economy continues to rebound, we will continue to see a longer-term trend of higher mortgage rates when compared to our artificially low mortgage rates in October. Now is the time to take advantage of mortgage rates before they increase further.
MICHAEL MCDEVITT 
Open market place, my ass. The whole boom aned boost cycle was started
sveral years ago when Wall Street gangsters encouraged mortgage brokers and banks to give loans to even the most unqualified, with the assurance that they would take them off their hands. Their plan all along was to do that
so they could then slice them and dice them, package and perfume them,
and make the backing for securities they would then sell to unsuspecting
investors, like public retirement funds here and abroad. Everyone along this chain made out like the bandits they are, except for the poor suckers
who were talked into taking these bad loans only to wind up in foreclosure
a few years later, and the poor suckers at the other end who wound up owning nearly worthless securities. And this is just the tip of the iceberg
which included, among other things, the Billion-dollar heist the Wall Street
banks pulled off when they raided the treasury just before Bush left office.
Your response is invited.
Ken, I agree with you but you are touching on a whole other subject. Once again, this blog is usually directed more towards realtor’s and loan officers to understand where the market is headed in terms of mortgage-backed securities, home sales, etc. Once again, the book “the big short” touches on this from the very get-go and sheds light on Wall St’s practices.