U.S. treasury bond yields lower for the week - The 10-year treasury bond closed the week yielding 1.69%, down from 1.74% last week. The 30-year treasury bond yield ended the week at 2.13%, down from 2.17% last week. We watch treasury bond yields because mortgage rates often follow bond yields.
Mortgage rates lower this week - The September 26, 2019 Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate average was 3.64%, down from 3.73% last week. The 15-year fixed was 3.16%, down from 3.21% last week. The 5-year ARM was 3.38%, down from 3.49% last week.
August California existing home sales report - The California Association of Realtors reported that existing single-family homes sales totaled 406,100 in August on a seasonally adjusted annualized rate. That represented a year over year increase of 1.6% from last August. The number of homes sold year to date is down 4.1% from the first 8 months of 2018. The statewide median price was $617,410, up 3.6% from last August. The unsold inventory index stood at a 3.2-month supply of homes for sale, down from a 3.3 month supply last August. Year over year results on a regional basis were as follows: In Los Angeles County the median price was $627,690, up 3.3% from last August. The number of sales was down 1.5% from last August. In Orange County the median price was $810,000, down 3.4% from August 2018. The number of sales increased 2.1% from August 2018. In Ventura County the median price was $661,900, up 0.3% from last August. The number of sales increased 1.4% from last August.
Nationwide existing-home sales and prices increase in August- The National Association of Realtors reported that that the number of existing-home sales increased 2.6% in August from the number of sales last August. The nationwide median price paid for a home increased 4.7% in August from one year ago. That marked the 90th conservative month of year over year increases in the median price. Pending home sales also grew 1.6% in August, a signal that September existing-home sales figures will be strong.
Near historic low mortgage interest rates increased home buyer confidence in third quarter - The National Association of Realtors reported that lower interest rates boosted consumer optimism in the real estate market. The survey completed September 23 revealed that 63% of consumers surveyed felt it was a good time to buy a home.