U.S. Housing starts rose more than expected in November. The Commerce Department said that housing starts rose 3.9 percent to a seasonally adjusted annual rate of 555,000 units. They also revised October’s numbers upward to a 534,000 unit pace, it was originally reported at 519,000 units.
Ground breaking for new homes last month was lifted by a 6.9 percent rise in single-family home construction which continues to shows strength. The multi-family sector continues to struggle and fell 9.1 percent.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +12 basis points last week causing 30 year fixed rates to move sideways from the previous week. This was the first week out of the last seven where pricing improved. However, it was a bumpy ride. MBS reached their worst levels on Wednesday which drove 30 year fixed rates to their highest levels since last May. We clawed our way back as the 10 year Treasury started to rally on very light volumes which skewed the rally somewhat.
MICHAEL MCDEVITT 