This week saw rates inch up a little on the rumor, then some words from Fed Chairman Janet Yellen indicating the US economy may be firming up enough to withstand an increase of the Fed Funds rate.  So what news backed this up?

The first big news was that New Homes sales were up 12.5%, which is the highest mark since October 2007. We then got the news on Thursday that July Durable Goods Orders were up 4.4%, stronger than expected, which is not good for the mortgage rates. The Q2 GDP was cut to 1.1% from the 1.2%, but as I said, the market-moving news was the much anticipated words from Yellen on the Fed’s view of whether the economy is showing enough signs of stronger health to warrant a rate hike… and it seems it is. So over all most rates went up about .125%.