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Sunday
Jul242016

June marks the first month-over-month double digit gain since January 2011

Mortgage rates -  Mortgage rates were slightly higher this week, yet still near historic lows.  The Freddie Mac Primary Mortgage Survey released on July 21, 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 3.45%. The 15-year fixed average rate was 2.75%. The 5/1 ARM average rate was 2.78%.

California's existing home sales up 10% in June - The California Association of Realtors reported that the number of existing homes sold in California were up 10% in June over May's seasonally adjusted annualized number.  It marked the first month over month double digit gain since January 2011.  The statewide median price home in June was $519,440 up 5.5% from last June, as tight inventory levels and low interest rates continue to push up home prices. The unsold inventory index showed that inventory levels of existing homes dropped from a 3.4 month supply in May to a 3.2 month supply in June. The long run average has been a 6.1 month supply, indicating that inventory levels are running about 60% of normal, according to CAR. 

Saturday
Jul092016

Mortgage rates at historic low levels

Mortgage rates at historic low levels -  Mortgage rates fell again this week. The Freddie Mac Primary Mortgage Survey released on July 7, 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 3.41%. The 15-year fixed average rate was 2.74%. The 5/1 ARM average rate was 2.68%.  

Realtor.com chief economist predicts best summer for the housing market in a decade - Jonathan Smoke, chief economist for Realtor.com reported that following the strongest spring in 10 years, the residential real estate market should continue to see growth throughout the summer despite some growing economic headwinds. Through May, year to date home sales (that's non-adjusted existing and new-home sales combined) are up 6 percent, over the last year, which is the best year since 2007, according to Smoke's calculations using the NAR and Commerce Department data. 

Monday
Jul042016

U.S existing home sales hit their highest pace in over a decade 

California existing home sales and prices up in May - The California Association of Realtors reported that existing home sales in California totaled 410,190 in May on a seasonally adjusted annual rate.  That is up 0.6% from April and down 3.2% from last May.  Tight inventory has impacted the number of sales, as there was just a 3.4 month supply of homes on the market in May, down from 3.5 months in April. A 6-7 month supply is considered normal.  

The median price paid for a single family home in California rose to $518,760 in May from $509,590 in April. 

 

Pending home sales rise in California  - The California Association of Realtorsreported on Thursday that statewide pending existing home sales rose 3.8% in Mayfrom May 2015. This was welcome news as year over year closed home sales dropped dropped in May on a year over year basis. They also reported that pending home sales in Southern California rose 5.6%  on a year over year basis compared to May 2015.  We look at pending sales to gage what closed sales will be a month or two later when they close.

U.S existing home sales hit their highest pace in over a decade - The National Association of Realtors reported that total existing home sales, which include single family homes, condos, town-homes, and co-ops, were up 4.5% in May from May 2015. The total number of sales on a annualized adjusted rate was 5.53 million homes in May 2016.  May was the highest annual pace since February 2007 when sales hit 5.79 million. 

U.S. Pending home sales lower in May - After three months gains in pending home sales, measured by homes that went under contract, The National Association of Realtors announced that pending home sales in May slipped 3.7% from April's figures. Year over year pending sales were down 0.2% from last May.  Tight inventory is thought to be the reason for sales being off. Pending sales which include resale, not new homes, include single family homes, condos, town houses, and co-ops. 

The markets are all waiting for the monthly jobs report.  They come out on the first Friday of every month, but not when Friday is the first of the month. Next Friday we will have June's job figures. 

Sunday
Jun262016

Stocks suffer worst day in 10 months following British vote to leave European Union

Stocks suffer worst day in 10 months following British vote to leave European Union - Stocks declined worldwide on Friday following results of British vote to leave the European Union. Stocks were up for the week until Friday morning. Polling suggested that the British people would vote to remain in the European Union.  Following the results the British prime minister, David Cameron, resigned adding further uncertainty. Nobody knows what the financial impact will be. Many felt that predictions of recession in Europe and The U.K. If the Brits voted to leave the EU were overblown to scare the British people into voting to remain in the EU, but nobody really knows for sure what the impact will be and if other countries will follow. The Dow Jones Industrial Average closed the week at 17,400.75, down from 17,675.16 last Friday. The S&P 500 closed the week at  2,037.41, down from 2,071.22 last week. The NASDAQ closed the week at 4,707.98, down from last week's close of 4,800.34.

Bond yields remain at 3-year low – The 10 year U.S. Treasury bond yield closed the week at 1.52%, down  from 1.62% last Friday.  The 30-year U.S. Treasury bond closed at 2.42%, down slightly from 2.44% last week.  Mortgage rates follow bond rates so we watch bond rates carefully.

Mortgage rates at 3-year low - The Freddie Mac Primary Mortgage Survey released on June 23, 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 3.56%. The 15-year fixed average rate was 2.83%.  The 5/1 ARM average rate was 2.74%. Rates dropped with stocks on Friday so rates are currently a little lower. 

Pending home sales rise in California  - The California Association of Realtors reported on Thursday that statewide pending existing home sales rose 3.8% in May from May 2015. This was welcome news as year over year closed home sales dropped dropped in May on a year over year basis. They also reported that pending home sales in Southern California rose 5.6%  on a year over year basis compared to May 2015.  

U.S existing home sales hit their highest pace in over a decade - The National Association of Realtors reported that total existing home sales, which include single family homes, condos, town-homes, and co-ops, were up 4.5% in May from May 2015. The total number of sales on a annualized adjusted rate was 5.53 million homes in May 2016.  May was the highest annual pace since February 2007 when sales hit 5.79 million. 

 


Friday
Jun032016

U.S. pending home sales at 10 year high

Homes more affordable in the first quarter - The California Association of Realtors reported that housing affordability in the state improved in the first quarter.  Strong wage growth, lower interest rates and leveling home prices pushes housing affordability higher. According to C.A.R. 34% of California households could afford to purchase a $465,280 median priced home. The income required to purchase a median priced home was $92,571. This was up from the fourth quarter of 2015 when only 30% of households could afford to purchase a median priced home. Condos and town-homes were even more affordable with 41% of households able to afford a condo or town-home. The income needed to purchase the median priced condo or town-home was  $77,575. 

California statewide median price breaks $500,000 - The California Association of Realtors reported that the median price of a home in California rose to $509,100 in April. That represents a 5.3% month over month increase from March. 

California home re-sales fewer due to tight inventory - The California Association of Realtors also reported that the number of homes sold in April dropped 2.6% from its annualized level in March. Year over year the number of sales declined 5.4% from April 2015. The Unsold Inventory Index dropped again to a 3.5 month supply in April. A normal market is a 6.1 month supply, so inventory levels are around 60% of normal, according to CAR. This tight inventory is pushing prices higher and sales lower as buyers are again finding it tough to find homes to buy. 

U.S. pending home sales at 10 year high - The National Association of Realtors announced that April pending home sales rose for the third consecutive month. April's 5.1% rise in pending home sales from March brings the number of homes that went under contract to the highest level in a decade.  The pending home sale index is a leading indicator of housing activity.  It is based on signed real estate contracts for existing single-family homes, condominiums, and co-ops.  Because homes go under contract a month or two before they close the index is a leading indicator of what closed sales figures will look like in the future.

Mortgage rates slightly higher than last week - The Freddie Mac Primary Mortgage Survey released on June 2, 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 3.66% The 15-year fixed average rate was 2.92%. The 5/1 ARM average rate was 2.88%.