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Monday
Jan092017

Mortgage Rates Follow Bond Yields

Mortgage rates follow bond yields, so we watch U.S. Treasury Bonds closely.  The 10-year U.S. Treasury Bond closed the week yielding 2.42%, down from 2.45% last Friday. The 30-year Treasury Bond yield closed the week at 3.00%, down from 3.08% last week 

Mortgage rates slightly lower this week - The Freddie Mac Primary Mortgage Survey released on January 5, 2017 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 4.20%. The 15-year fixed average rate was 3.44%.   The 5/1 ARM average rate was 3.33%. 

Sunday
Dec252016

Mortgage Rates Continue to Rise

Mortgage rates  continue to rise - The Freddie Mac Primary Mortgage Survey released on December 22, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 4.30% The 15-year fixed average rate was 3.52%.  The 5/1 ARM average rate was 3.32%. Rates are now about 3/4% higher than before the election 6 weeks ago.

California home sales and prices higher than last November - The California Association of Realtors announced that November home sales totaled 442,320 homes on a seasonally adjusted annualized rate.  That was up just 0.1% from October, yet up 17.7% from last November when new closing disclosure delayed closings. The unsold inventory index dropped again to a 3.1 month supply of homes on the market. That's an all time low and down from a 4.2 month supply last November.  November's statewide median price was $501,710, up 4.9% from November 2015 when the median price was $478,140. 

Nationwide home sales highest since February 2007 - November existing home sales rose 0.7% from October's level and were 15.4% higher than last November, according to The National Association of Realtors. The median price for an existing home in The U.S. Was 6.8% higher than November 2015. That marked the 57th consecutive month with a year over year price gain. 



I wish you all a Happy Holiday.

Friday
Dec092016

8% Year Over Year Increase from Last October's Figures

California existing home sales and prices increase in October - The California Association of Realtors released its October  home sales report.  The number of existing homes sold in October totaled 442,970 on a seasonally adjusted annualized rate. That represented an increase of 4.1% from September and a year over year increase of 8% from last October's figures. The statewide median price was $513,520, up 1.2% from September and up 7.3% from last October when the median price was $478,780.  Inventorycontinues to be near record lows as the unsold inventory index slipped to a 3.4 month supply of homes listed in October from a 3.5 month supply in September. 

 

 

California pending home sales increase in October - The number of new home contracts on re-sale homes in California increased 1.5% in October from last October's numbers according to data released by The California Association of Realtors. On a monthly basis pending contracts were down 6.7% from September.  The Southern California region fared even better with October sales up 6.8% from last October and up 2.4% from September. The association uses year over year rather then month over comparisons to account for seasonal changes in sales numbers. Typically sales begin to slow heading into the holidays which makes comparing same month figures more accurate. Pending home sales figures are useful because they give an indication of what closed sales figures will be in 30 to 60 days when those sales close escrow. 

 


U.S. existing home sales hit the highest level since February 2007 - The National Association of Realtors reported that sales of existing homes increased 2% in October to an annual rate of 5.6 million homes, the highest level since February 2007.  Existing home sales are closed re-sales of single family detached homes, town homes, condominiums, and co-ops. Year over year the number of sales are up 5.9% from last October's levels. Prices were also up nationwide as the median price this October was 6% higher than October 2015. Pending home sales were also higher nationally increasing 2% year over year. 


Sunday
Nov132016

California housing affordability unchanged in 3rd quarter

Mortgage rates rise to highest  levels in 3 years  -  Rates surged as bond yields and stocks rose sharply following the election results. Rates on just about every mortgage product increased over 1/4%.  By Friday the 30 year fixed rate was close to 4%. The Freddie Mac Primary Mortgage Survey which was released on November 10, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.57%. The 15-year fixed average rate was 2.88%.. The 5/1 ARM average rate was 2.88%. Unfortunately, this survey was last Wednesday November 2 to Tuesday November 8. Rates surged after the survey period, so rates will be about 1/4% higher in next week's survey based on where we were at the end of the week. 



California housing affordability unchanged in 3rd quarter - The California Association of Realtors reported that 31% of California households could afford to purchase a median priced home ($515,940).  That was unchanged from the second quarter, but up from 29% in the 3rd quarter in 2015. Although prices were higher this year, wages were higher and interest rates were lower than last year in the 3rd quarter, which increased affordability. Rates look like they will be higher in the 4th quarter so it will be interesting to see where affordability goes. The affordability for a median priced Condo of $418,230 was 40%.
Next week we will have California sales figures and prices for October. It will be interesting to see what the data says.  We have felt a little slowing, but, that said, we are pretty spoiled by several great years! I'd expect that sluggishness we have felt to be just temporary  based on inventory, affordability levels and what experts are saying. 

Sunday
Nov062016

Mortgage rates slightly higher this week

Mortgage rates slightly higher this week - The Freddie Mac Primary Mortgage Survey released on November 3, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.54%. The 15-year fixed average rate was 2.84%. The 5/1 ARM average rate was 2.87%. I'd expect rates to be slightly lower in next week's survey based on where we were at the end of the week.