Personal incomes surge in December
Posted on Thursday, January 31, 2013 at 3:31:13 PM
A surge in the personal income level across the country at the end of 2012 could result in additional homebuying activity during the course of 2013.
In December, personal incomes increased 2.6 percent to the highest level is nearly eight years, according to a report from the Department of Commerce. Meanwhile, the personal savings rate spiked 6.5 percent, which means consumers could be putting away money for major investments, such as purchasing property.
"On balance, even abstracting from the one-off surge in dividend payments - which we expect to reverse in January - the general tone of this report was quite encouraging," Millan Mulraine of TD Securities told the Wall Street Journal.
With disposable income on the rise, fixed mortgage rates continued to hover below 4 percent in the week ending January 31.
According to a report from Freddie Mac, during this period, the average rate for a 30-year FRM hit 3.53 percent, up from 3.42 percent a week earlier. Meanwhile, 15-year fixed-rate mortgage averaged 2.81 percent, which was a notable hike from 2.71 percent a week earlier.
Consumers who want to ensure they get the best mortgage deal possible should consult a mortgage comparison chart from Home Loan Investment Bank.