Treasury Bond Yields at lowest level in 3 years - Bond yields dropped sharply on recession fears - The 10-year treasury bond closed the week yielding 1.55%, down from 1.74% last week. The 30-year treasury bond yield ended the week at 2.01%, down from 2.26% last week. We watch treasury bond yields because mortgage rates often follow bond yields.
Mortgage rates near record lows this week - The August 15, 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 3.60, unchanged from 3.60% last week. The 15-year fixed was 3.07%, almost unchanged from 3.05% last week. The 5-year ARM was 3.35%, unchanged from 3.36% last week. Rates dropped at the end of the week. The 30-year fixed was well under 3.5%! Next week’s survey rates should be lower.
July California existing home sales report – July marked the first month in one year where the number of sales increased year over year for the same month the previous year - The California Association of Realtors reported that existing single-family homes sales totaled 411,630 in July on a seasonally adjusted annualized rate. That represented a jump of 5.6% from Juneand a year over year increase of 1.1% from last July. The number of homes sold from January to July are down 4.9% compared to the first 7 months of 2018, but it was encouraging to have a month with more sales than the same month last year. The statewide median price was $607,990, up 2.8% from July 2018. Theunsold inventory index stood at a 3.2-month supply of homes for sale, down from a 3.3 month supply last July. Year over year results on a regional basis in July were as follows: In Los Angeles Countythe median price was $611,250, up 2.3%, and the number of sales increased 4.7%. In Orange County the median price was $839,450, up 1.3%, and the number of sales increased 6.7%. In Ventura Countythe median price was $685,000, up 3.4%, and the number of sales increased 2.1%.