Treasury Bond Yields – The 10-year treasury bond closed the week yielding 2.88%, almost unchanged from 2.86% last week. The 30-year treasury bond yield ended the week at 3.16%, up slightly from 3.13% last week. We watch bond rates because mortgage rates follow bond rates.
Mortgage Rates stabilize this week – The February 22, 2018 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.40%, up slightly from last week’s 4.38%. The 15-year fixed was 3.85%, up slightly from 3.84% last week. The 5-year ARM was 3.65%, slightly up from 3.63% last week.
Existing home sales nationwide decline 3.2% in January – The National Association of Realtors reported that total existing home sales dropped 3.2% in January from December’s home sales rate. The median price paid for a home in January was 5.8% higher than January 2017, the 71st straight month of year-over-year increases. The number of homes for sale represented a 3.4 month supply, down from 3.6 months last January. Existing home inventory in January was down 9.5% from January 2017. Extremely tight inventory has caused prices to increase and has begun to cause fewer sales.