Treasury Bond Yields at lowest level in 3 years - Bond yields dropped sharply this week. The 10-year treasury bond closed the week yielding 1.74%, down from 1.86% last week. The 30-year treasury bond yield ended the week at 2.26%, down from 2.39% last week. We watch treasury bond yields because mortgage rates often follow bond yields.
Mortgage rates near record lows this week - The August 8, 2019 Freddie Mac Primary Mortgage Survey showed mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate average was 3.60%, down from 3.75% last week. The 15-year fixed was 3.05%, down from 3.20% last week. The 5-year ARM was 3.36%, down from 3.46% last week.
Home affordability drops in second quarter, but affordability is still higher than one year ago - The California Association of Realtors reported that 30% of California households could afford to purchase a $608,660 median-priced home in the second quarter of 2019. That was down from 32% in the first quarter, as the median price rose over 7% from the first to second quarter, but homes are more affordable than one year ago when only 26% of households could afford the median priced home in Q2 2018. The income needed to purchase a median priced home was $122,960. 45% of households could afford to purchase a median priced condominium or townhouse which required an annual income of $95,960.