Bond yields higher this week – The 10-year Treasury bond closed the week at 2.43%, up from 2.39% last week. The 30-year treasury yield ended the week at 2.93%, up from 2.89% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates higher this week – The October 26, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.94%, up from 3.88% last week. The 15-year fixed was 3.25%, up from 3.19% last week. The 5-year ARM was 3.21%,up from 3.17% last week.
Third quarter GDP beats expectations – The Commerce Department reported that the Gross Domestic Product, the broadest measure of growth in the economy, unexpectedly rose 3% in the third quarter after a 3,1% increase in the second quarter. Analysts expected that the rate of growth would be 2.5%, due to some slowing caused by hurricane damaged areas.
September U.S. Existing Home Sales and Prices – The National Association of Realtors reported that existing home sales increased 0.7% in September from August sales levels. Year-over-year closed escrows on existing homes were 1.5% below last September’s pace. Most of that decline was attributed to hurricane damaged areas which showed large declines in sales. Existing home sales include re-sales of one to four unit homes, town-homes, condominiums, and Co-ops. The median price nationwide for an existing home increased 4.2% from September 2016, the 67th straight month of year-over-year increases. Total housing inventory was 1.6% higher in September than in August, but 6.4% below last September, representing its 28th straight month of year-over-year decreases in the amount of homes for sale. The unsold inventory index fell to a 4.2 month supply of homes for sale, down from a 4.5 month supply one year ago.