Stocks dropped from all time highs to end the week slightly lower - Stock markets closed slightly lower this week after six straight weeks of gains that pushed markets to record highs last week. With the Dow up 20%, the S&P up almost 25%, and the NASDAQ up over 28% year to date, markets are on track for a historic year. The Dow Jones Industrial Average closed the week at 27,875.62, down 0.5% from 28,004.89 last week. It is up 19.5% year to date. The S&P 500 closed the week at 3,110.29, down 0.3% from 3,120.85 last week. It is up 24.1% year to date. The NASDAQ closed the week at 8,519.88, down 0.2% from 8,540.83 last week. The NASDAQ is up 28.4% year to date.
U.S. treasury bond yields lower this week - The 10-year treasury bond closed the week yielding 1.77%, down from 1.84% last week. The 30-year treasury bond yield ended the week at 2.22%, down from 2.31% last week. We watch treasury bond yields because mortgage rates often follow bond yields.
Mortgage rates drop to 3 year lows which are near 50 year lows - The November 21, 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 3.66%, down from 3.75% last week. The 15-year fixed was 3.15%, down from 3.20% last week. The 5-year ARM was 3.39%, down from 3.44% last week.
California October 2019 existing home sales report - The California Association of Realtors reported that existing single-family home sales totaled 402,240 on a seasonally adjusted annualized basis in October. That was 1.9% higher than last October. The statewide median price was $605,280, up 6.0% from October 2018. The unsold inventory index stood at a 3 month supply of homes for sale, down from a 3.6 month supply one year ago. Inventory levels have shrunk to the 2017 record low levels. On a regional basis: Los Angeles County home existing home sales were up 2.8%, and the median price was up 5.4% from October 2018. Orange County existing home sales were up 12.9%, and the median price was up 1.2% from last October. Ventura County existing home sales were up 14.5%, and the median price was up 1.5% from October 2018.