| August ended on a positive note for the economy and financial markets, despite some continued uncertainty surrounding inflation and interest rates. The stock market had another strong month, with the S&P 500 gaining 2.6%, the Nasdaq up 3.9%, and the Dow rising 1.3%. For the year, the S&P 500 is now up 12.3%, the Nasdaq 13.5%, and the Dow 10.7%. While headline second-quarter GDP growth came in at a modest 1.5%, underlying consumer and business demand was much stronger, growing at a 4.2% annualized rate. Consumer spending and household incomes also continued to increase, and corporate earnings remained very strong, all indications that the economy continues to be resilient.
Inflation remains above the Federal Reserve’s target, with July PCE inflation at 3.7% and core PCE at 3.3%, although July CPI showed some improvement. Mortgage rates remained relatively stable throughout August, ending the month at approximately 6.66% for a 30-year fixed mortgage. Despite these higher borrowing costs, housing demand has remained consistent. Locally, the single-family home market continues to perform well. Buyer demand remains active and prices have generally remained stable, especially for well-priced homes. The condominium market is more challenging, with greater inventory and more pressure on pricing. This is due to higher HOA monthly fees brought on by increases in insurance costs, a newer balcony law, and increasing reserve requirements. Overall, we enter September with an economy that continues to show resilience, strong financial markets, and an active housing market, while inflation, interest rates and employment remain the key areas to watch. 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 August 27, 2026, were as follows: The 30-year fixed mortgage rate was 6.66%, unchanged from 6.66% at the end of July. The 15-year fixed was 5.98%, down from 6.04% last month. The graph below shows the trajectory of mortgage rates over the past year. Stock markets – Dow Jones Industrial Average closed the month at 53,185.90, up 1.3% from 52,485.03 last month. The Dow is up 10.7% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,686.14, up 2.6% from 7,489.72 last month. The S&P is up 12.3% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 26,370.89, up 3.9% from 25,373.85 at the end of July. The Nasdaq is up 13.5% year-to-date from 23,241.99 on December 31, 2025.
U.S. Treasury Bond Yields — The 10-year U.S. Treasury bond yield closed the month at 4.75%, unchanged from 4.75% on July 30, 2026. The 30-year US treasury bond yield ended the month at 5.25%, almost unchanged from 5.27% on July 30, 2026. We watch bond yields because mortgage rates often follow treasury bond yields.
Home sales data is released by the National Association of Realtors and the California Association of Realtors around the third week of the month for the previous month. Below is a summary of the July home sales reports that were released in August. You can get a report on our website ( RodeoRe.com) for your city or zip code using the same data.
U.S. existing-home sales – July 2026 – The National Association of Realtors reported that existing-home sales totaled 4.06 units on an annualized basis in June, down 1.7% month-over-month from 4.09 million units on a seasonally adjusted annualized rate in June but up 1.4% from the number of homes sold last July. The median price paid for a home in the U.S. in June was $434,100, up 2% from one year ago. There was 4.6-month supply of homes for sale in July, unchanged from June. First-time home buyers accounted for 29% of all homes sold, 26% of all sales were cash buyers, 14% of sales were investors or second home buyers, and 2% of sales were foreclosure or short sales.
California existing-home sales – The California Association of Realtors reported that existing-home sales totaled 263,170 on an adjusted annualized basis in July, down 6.0% from 279,880 in June, but up 1.1% from 260,250 annualized sales in July 2025. The statewide median price paid for a home was $887,680 in July, down 1.9% from $904,640 in June, but up 0.3% from $885,180 last July. Housing inventory loosened slightly in July but remained tighter than one year ago. The Unsold Inventory Index showed that there was a 3.4-month supply of homes for sale in July, up from 3.1 months in June, but down from a 3.7-month supply in July 2025.
The graph below shows home sales figures for Southern California.
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