| Stocks moved higher this week despite continued volatility in interest rates and oil prices. Strong corporate earnings, particularly from technology and AI-related companies, helped boost investor confidence, while easing concerns over tensions in the Middle East also supported the markets. Unfortunately, inflation fears have caused Treasury yields to rise, which has increased mortgage rates. They are at their highest levels in nearly two years.
Mortgage rates – Every Thursday, Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of May 21, 2026, were as follows: The 30-year fixed mortgage rate was 6.51%, up from 6.36% last week. The 15-year fixed was 5.85%, up from 5.71% last week. The graph below shows the trajectory of mortgage rates over the past year.
Stock markets – The Dow Jones Industrial Average closed the week at 50,579.70, up 2.1% from 49,526.17 last week. It is up 5.2% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,437.47, up 0.1% from 7,408.50 last week. The S&P is up 8.2% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 26,343.97, down 0.1% from 26,225.15 last week. It is up 12.8% year-to-date from 23,241.99 on December 31, 2025. U.S. Treasury Bonds – The 10-year treasury bond closed the week yielding 4.56% down slightly from 4.59% last week. The 30-year treasury bond yield ended the week at 5.07%, down slightly from 5.12% last week. We watch bond yields because mortgage rates follow bond yields. Home sales figures are released on the third week of the month for the previous month by the National Association of Realtors and the California Association of Realtors. Here is a summary of the April existing home sales reports. U.S. existing-home sales – April 2026 – The National Association of Realtors reported that existing-home sales totaled 4.02 million units on a seasonally adjusted annualized rate in April, up from 3.98 million in March, and unchanged from the number of homes sold last April. Year-over-year home sales were down 1% from the number of homes sold last March. The median price paid for a home in the U.S. in March was $417,700, up 0.9% year-over-year from $414,000 last April. California existing-home sales – The median price soared 7.1% in April as inventory tightened – The California Association of Realtors reported that existing-home sales totaled 275,580 on an adjusted annualized basis in April, up 4.1% from 264,810 annualized sales last April. The statewide median price paid for a home was $914,810 in April, up 7.1% from $889,190 in March. Year-over-year, April’s median price was up 0.4% from $911,400 one year ago. The increase in the median price was attributed to more homes selling in the higher range than the lower range, as higher price range buyers have been less impacted by gas prices, inflation, etc. They also have more money in the stock markets, which are at or near record highs. Below is the housing data for Southern California by County.
Have a great weekend! |
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