Bond yields drop this week – The 10-year Treasury bond closed the week at 2.35%, down from 2.40% last week. The 30-year treasury yield ended the week at 2.78%, down from 2.88% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates up slightly this week – The November 16, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.95%, up from 3.90% last week. The 15-year fixed was 3.31%, up from 3.24% last week. The 5-year ARM was 3.21%, almost unchanged from 3.22% last week.
California jobless rate falls to 4.9% – California posted strong job gains in October, adding 31,700 net new non-farm jobs. That brought the state’s unemployment rate down from 5.1% in September to 4.9% in October. Wage growth slowed as hourly wages were 3.2% higher in October from one year earlier, down from September’s wage growth of 3.8%, according to the U.S. Bureau of Labor Statistics. California is outpacing the U.S. as the national rate of wage growth was 2.4% in October.
New housing starts rebounds in October – The Commerce Department reported that new housing starts jumped 13.7% in October. That was the highest level since October 2016.September’s new home starts pace was down considerably because of a very steep drop in new construction in hurricane damaged areas. Because September’s figures were depressed, a 13.7% month-over-month increase is not as exciting as it sounds. Yet it was the highest number of permits pulled for new home construction since October 2016.
The housing sales and price report should be released next week by The California Association of Realtors.