Even as the housing market entered its traditionally slower season in November, home prices showed big gains from a year ago.  Prices rose 18.8% year over year on the S&P CoreLogic Case-Shiller National Home Price Index. Yet that was a slower rate than the October pace, which was a 19% annual gain.

A forward-looking gauge of the economy’s health rose 0.8% in December, the according to the Conference Board.  The organization’s Leading Economic Index now stands at 120.8, following a 0.7% increase in November. The move is consistent with many reports that foresee steady, if slower, growth ahead for the economy.  The U.S. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring.  The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2% percent (annualized).  For all of 2022, they forecast the US economy will expand by a robust 3.5 percent – well above the pre-pandemic trend growth.

The average rate on the popular 30-year fixed mortgage hit 3.7%, according to Mortgage News Daily. That is the highest since early April 2020 and now 83 basis points higher than the same time one year ago.  Rates are reacting to surging bond yields, as financial markets react to swifter and more aggressive monetary policy tightening by the Federal Reserve.