The economy has finally showed a stronger footing, according to First Team Weekly Mortgage Watch. Nearly every piece of economic data came in positive. One of the data showed that the retail sales rose by 0.8%. There is no surprise that the mortgage rates moved higher last week with this stronger economic recovery.

Since we are seeing a stronger economic recovery, we will most likely seeing the rates moving upward. However, if we compared the current rates with the rates few years ago, the rates that we have right now is still considered low.

If the economy showing a good recovery, then the housing market will start to move from the “buyer’s market” to the “neutral market”. Moreover, according the to the Market Index, we are already in the “neutral market” in Irvine and Tustin (CA) areas.