Home prices and consumer confidence fall
Posted January 31, 2012
Consumer Confidence fell in January to a reading of 61.1 – the reading was down from the December number and much lower than what economists were expecting. Consumer concerns over jobs and income continue to weigh on the index.
The Case-Shiller Home Price Index also fell – paving the way for the third consecutive month of declines. Nationally, home prices dropped in 19 of the 20 cities which the Home Price Index tracks across the nation. The Triangle is not a part of the Index – the closest Index City is Charlotte. Our confidence levels and home price trends seem to be higher than the current national averages … activity for sales also continues to build significant pace in the Triangle as we enter February.
This negative news helped Bond Prices increase today; dropping yields back to 1.79 by mid-afternoon thereby helping to put additional downward pressure on Mortgage Rates as well. This Yield is now the lowest we’ve seen in well over a year … great news for potential homebuyers and homeowners interested in refinancing.