Bond yields unchanged this week – The 10-year Treasury bond closed the week at 2.34%, unchanged from 2.35% last week. The 30-year treasury yield ended the week at 2.76%, unchanged from 2.78% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates unchanged this week – The November 22, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.92%, down slightly from 3.95% last week. The 15-year fixed was 3.32%, almost unchanged from 3.21% last week. The 5-year ARM was 3.22%, almost unchanged from 3.21% last week.
Extremely low supply of housing for sale causes a downtick in year-over-year sales in October, and continues to drive prices up – The California Association of Realtors reported that existing single family home sales totaled 431,020 in October on a seasonally annualized rate. That represents a 0.8% increase from September, but a 3.4% decrease from last October’s sales pace. The statewide median price was $546.430, up 6.1% from October 2016. The unsold inventory index dropped to a 3 month supply of homes for sale in October from 3.2 month supply in September. There was a 3.4 month supply of homes for sale in October 2016. Year-over-year there are 11.5% fewer homes for sale this October than last October. Pending home sales (homes that went under contract) also dropped 2.6% from last October.