Bond yields almost unchanged this week – Remaining near the lowest levels of the year – The 10-year Treasury bond closed the week at 2.17%, almost unchanged from 2.19% last week. The 30-year treasury yield ended the week at 2.75%, slightly down from 2.78% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates remain under 4% – The 30-year fixed rates are about the lowest they have been in almost a year. Short term rates have risen. The August 24, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.86%, down slightly from 3.89% last week. The 15-year fixed was 3.16%, down slightly from 3.17% last week. The 5-year ARM was 3.17%, up slightly from 3.16% last week.
Fewer homes sold nationwide in July than June, yet still more than one year ago – The National Association of Realtors reported that total home sales slipped 1.3% in July from June’s sales pace level. Year-over-year the pace of home sales were still 2.1% higher than last July. Prices have continued to rise. The median price was 6.2% higher this July than July 2016. That marked the 65th straight month of year-over-year price increases. Inventory levels continued to shrink. The number of homes for sale nationwide was down 9% from one year ago. The unsold inventory nationwide represents a 4.2 month supply. That is down from a 4.8 month supply last July. Tight supply is causing prices to rise. Total existing home sales include all re-sale single family one-to-four unit homes, condominiums, co-ops, and town homes.