According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note.  New construction of one-family homes rose 4.4 percent in December to an annualized rate of 470,000, the most since April 2010. Existing home sales increased 5.0 percent at the end of the year to 4.61 million houses, the largest amount since May 2010. Furthermore, pending home sales in November and December averaged the highest reading since the March and April 2010 period."