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Mortgage rates were unchanged this week – Every Thursday Freddie Mac publishes a 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 January 4, 2024, were as follows: The 30-year fixed mortgage rate was 6.62%, unchanged from 6.61% last week. The 15-year fixed was 5.89%, down from 5.93% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Their mandate is to provide liquidity, stability, and affordability to the U.S. housing market.

Los Angeles, a city renowned for its diverse, iconic, and vibrant culinary scene, offers a myriad of dining experiences. Likewise, each restaurant tells its own unique story. This curated selection of eateries takes you on a gastronomic journey through LA.

Brent’s Deli Northridge

Location: 19565 Parthenia St, Northridge

Nestled in the heart of Northridge in the San Fernando Valley, Brent’s Delicatessen and Restaurant. This cornerstone of the community offers an authentic deli experience. With a history spanning over 55 years, this family-owned deli has become famous for its hearty pastrami sandwiches, massive breakfast platters, and delicately crafted blintzes. The menu is a rich tapestry of flavors, all prepared with traditional methods passed down through generations.

Smoke House Restaurant

Location: 4420 Lakeside Dr, Burbank

A stone’s throw from some of LA’s biggest studios in Burbank is the Smoke House Restaurant. This historical gem dates back to 1946. This establishment is more than just a restaurant; it’s a cultural landmark where Hollywood’s creatives convene. The menu pays homage to classic American cuisine, featuring charred steaks and robust flavors. The dining room, echoing a bygone era, provides a rustic and lively ambiance.

Newport Seafood Restaurant

Location: 518 W Las Tunas Dr, San Gabriel

Newport Seafood Restaurant has been a culinary beacon in the San Gabriel Valley since 1996. Blending Vietnamese and Chinese culinary traditions, the result creates an unforgettable dining experience. Under the capable guidance of Sophia Lau, daughter of founders Wendy Lam and Ly Hua, this bustling restaurant has become a favorite for its unique offerings. The menu is a celebration of seafood. Likewise, expect dishes like scallion, ginger, and garlic-flavored lobster, and the richly seasoned beef luc lac.

Musso & Frank Grill

Location: 6667 Hollywood Blvd, Hollywood

As Hollywood’s oldest restaurant, Musso & Frank Grill has been a culinary icon for over a century. This legendary establishment is renowned for its mastery of Continental classics, including a superb French onion soup. The dining room, steeped in history, creates an ambiance that is quintessentially LA and utterly timeless.

Jitlada Restaurant

Location: 5233 Sunset Blvd, Los Angeles

A cornerstone of Thai Town since the 1970s, Jitlada experienced a renaissance in 2006.  Enjoy an extensive menu with rare Southern Thai specialties. The restaurant’s ambiance, with its packed tables and dim lighting, provides a cozy backdrop. Indulge in dishes like the crispy morning glory salad, mussels in a fragrant lemongrass broth, and the fiery turmeric-fried catfish. The expansive menu encourages communal dining. Likewise, this allows guests to explore the rich tapestry of Southern Thai cuisine in a setting that’s as classic as it gets.

The Tower Bar

Location: 8358 Sunset Blvd

The Tower Bar on the Sunset Strip in West Hollywood is nothing short of iconic. Owned by Jeff Klein, this staple hotel bar has been the epicenter of countless Hollywood deals and clandestine meetings over the years. Its reputation as a discreet and upscale haven for the socially mobile of Los Angeles adds to its allure. The bar’s understated elegance and shadowy corners make it an ideal spot for both industry insiders and a new generation of patrons drawn to the mystique of Old Hollywood. The atmosphere is electric, filled with the excitement of great fun and unparalleled people-watching opportunities.

Tail O’ the Pup

Location: 8512 Santa Monica Blvd

Tail O’ the Pup, opened in 1946, is a beloved part of LA’s history, known for its iconic hot dog-shaped building in West Hollywood. Recently revitalized, the establishment continues to serve its classic American fare mere blocks from its original location on La Cienega Boulevard. Patrons can enjoy split-grilled hot dogs, crispy fries, and hearty cups of beef chili, all while appreciating the nostalgic charm of one of LA’s most historic programmatic theme buildings. The updated Tail O’ the Pup offers a unique blend of tradition and modernity, making it a must-visit for both history enthusiasts and foodies alike.

Dan Tana’s

Location: 9071 Santa Monica Blvd, West Hollywood

Since its opening in 1964, Dan Tana’s has been the iconic quintessential Hollywood hangout. This Italian American restaurant buzzes with energy late into the night, every night of the week. The menu features beloved classics like chicken parmesan and grilled steaks, while the bar is a legendary spot for rubbing shoulders with celebrities. The vibrant and intimate atmosphere of Dan Tana’s captures the essence of Hollywood’s golden era, making it a timeless favorite among locals and visitors alike.

Polo Lounge

Location: 9641 Sunset Blvd, Beverly Hills

The Polo Lounge, a storied establishment nestled in Beverly Hills, is renowned for its idyllic patio setting and illustrious history. This lunchtime haven boasts a lush garden ambiance and impeccable service, creating an oasis in the heart of the city. While the menu offers straightforward, albeit pricey, fare, the experience of dining here is about more than just the food. Guests come for the classic McCarthy salad and other mid-century dishes, but the real draw is the chance to be part of the Hollywood elite, potentially mingling with stars in a setting that exudes luxury and exclusivity.

Dan Sung Sa

Location: 3317 W 6th St, Los Angeles, CA 90020 Phone: (213) 487-9100

Established in 1997 by owner Caroline Cho, Dan Sung Sa is an iconic cornerstone of Koreatown, bringing the essence of Korean street-style pubs, known as pojangmacha or pocha, to Los Angeles. This popular spot serves an array of comfort foods perfect for late-night cravings, including grilled skewers, cheesy corn, and hearty stews. These dishes are designed to complement the extensive selection of beer and soju, making Dan Sung Sa a go-to destination for those looking to experience a slice of Korean nightlife. The pub’s vibrant atmosphere and commitment to authentic Korean flavors have made it a beloved institution, remaining open daily until 2 a.m. for night owls and food enthusiasts alike.

As the calendar turns to the New Year, it presents an ideal opportunity to rejuvenate the aesthetic of your luxury home. For 2024, the trend in high-end decor is a harmonious blend of sophistication and modernity, offering ample opportunities to refine and enhance your living spaces.

The Resurgence of Opulent Textures

This year, luxurious textures take center stage. Velvet and silk, long associated with regal elegance, are making a strong comeback. Consider reupholstering your furniture with these rich fabrics, not just for their luscious appearance but for the unique tactile experience they offer. A velvet sofa or silk draperies can instantly uplift your space, adding depth and warmth.

Bold Color Palettes: A Statement of Luxury

Gone are the days of playing it safe with neutrals. 2024’s palette is bold and daring, embracing deep blues, emerald greens, and even metallic hues. These colors can transform a room, imparting a vibrant, contemporary energy. However, the key is balance. Use these colors as accents – in pillows, art, or a feature wall – to ensure they enhance rather than overpower your space.

Sustainability Meets Luxury

Sustainability is no longer a mere trend but a necessity, and the luxury home sector is leading the way. This year, we’re seeing a surge in the use of sustainable materials that don’t compromise on style. Consider reclaimed wood for flooring or furniture, recycled glass for backsplashes or countertops, and eco-friendly, non-toxic paints. These choices not only look good but also demonstrate a commitment to environmental responsibility.

Customization: The Ultimate Luxury

Personalization is the pinnacle of luxury. Bespoke furniture pieces, custom art, and one-of-a-kind decor items allow homeowners to express their unique tastes and stories. Investing in artisanal or custom-made pieces ensures that your home stands out and reflects your personality.

Integrating Technology with Decor

In 2024, luxury home decor is not just about aesthetics but also about integrating technology seamlessly. Smart lighting systems that can change the ambiance of a room with a voice command, hidden speakers that blend into your decor, and automated window treatments are just a few examples of how technology is enhancing the luxury home experience.

The Revival of Traditional Design Elements

While contemporary trends are prevalent, there’s a renewed interest in traditional design elements. Classic patterns, vintage pieces, and antique furniture are being reimagined in modern contexts. The juxtaposition of old and new creates a dynamic and interesting space that respects the past while embracing the future.

Outdoor Spaces as Extensions of Indoor Luxury

Lastly, luxury living in 2024 extends beyond the interior. Outdoor spaces are being transformed into luxurious extensions of the home. Think elegantly furnished patios, outdoor kitchens, and even exterior art installations. These spaces offer a seamless transition from indoors to outdoors, perfect for entertaining or relaxation.

In conclusion, luxury home decor in 2024 is about creating a space that is both stylish and personal. It’s a blend of bold choices, sustainable practices, technological integration, and a nod to traditional elegance. By embracing these trends, you can ensure your home is not only contemporary and chic but also uniquely yours.

Inflation led the markets in 2023 – We began the year with the inflation rate at 6.5%, down from its peak of 9.1% in June of 2022. The inflation rate was 3.2% in November and many experts feel that December will be lower. That figure will be released in January. After nearly two years of rising interest rates, the Fed shifted course in December. They announced that their efforts to tame inflation were working and that they felt that the trajectory of inflation is expected to continue to drop. Their guidance for 2024 is that they expect to drop rates three times. With the Fed Fund Rate at a 23-year high that was welcome news to investors.

Stock markets soared in 2023 – Stock markets had a banner year. The Dow and S&P approached their record highs set in 2021, while the NASDAQ gained over 43%, yet is still well off its highs of 2021. It has been a strange two years. In 2022 when inflation began to rise to 40-year highs, the Fed began raising interest rates to slow the economy. Most experts felt that these steep interest rate increases would throw the country into a recession and stocks had one of their worst years in 2022, with steep losses. As the Fed kept increasing rates, employers kept hiring, and the unemployment rate remained at or near 60-year lows. With a shortage of employees’ wages increased above the rate of inflation. With the job market so strong consumers kept sending at record levels. Consumer spending accounts for 2/3 of the U.S. economy. Not only did a recession not materialize, but the economy grew at a high rate.  The GDP, the broadest gage of economic output, was up 2.0% in Q1, 2.1% in Q2 and 4% in the fourth quarter. That’s above the long-term average of 3.19%. The fourth quarter GDP figure will be released in January. The outlook for 2024 is strong. The Dow Jones Industrial Average ended the year at 37,689.40, up 13.7% from 33,147.25 on December 31, 2021.  The S&P 500 closed the year at 4,769.89, up 24.2% from 3,839.50 on December 31, 2022.  The NASDAQ closed at 15,011.35, up 43.4% from 10,466.48 at the end of 2022.

U.S. Treasury Bond Yields rise 2022 – The 10-year U.S. treasury bond yield closed the year at 3.88%, up from 3.88% On December 31, 2022. It went over 5% in October, but fell in November and December. It was 1.52% on December 31, 2021. The 30-year treasury yield ended the year at 3.97%, up from 3.97% on Dec. 31, 2022. It hit 5% in October, before falling in the last two months. It was 1.90% on December 31, 2021. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage Rates – It was a turbulent year for mortgage rates. The year began with rates in the mid 6% range, but they rose sharply in September and October, before ending the year back to where they began. Fortunately, with inflation taming it appears that rates will continue to drop in 2024. The December 28, 2023 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed rate mortgage average was 6.61%, up from 6.42% on December 29, 2022. The 30-year peaked at 8% in October, before dropping sharply in November and December.  It was 3.11% on December 28, 2021. The 15-year fixed was 5.93%, up from 5.68% last December. The graph below shows the trend of mortgage rates over the last year.

U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 3.82 million units on a seasonally adjusted annualized rate in November, down 7.3% from an annualized rate of 4.12 million in November 2022.  The median price for a home in the U.S. in November was $387,600, up 4% from $372,700 last November. There was a 3.5-month supply of homes for sale in November, up from a 3.3-month supply last November. First-time buyers accounted for 31% of all sales. Investors and second-home purchases accounted for 14% of all sales. All-cash purchases accounted for 29% of all sales. Foreclosures and short sales accounted for 1% of all sales.

Home sales hit an all-time low in 2023 – California Association of Realtors November existing-home sales report – The California Association of Realtors reported that existing-home sales totaled 223,940 units on a seasonally adjusted annualized basis in November, down 7.4% from October. November marked the third straight month of the annualized sales rate dropping under 250,000, a level that was thought could never happen, and the 29th straight month of year-over-year declines in sales. Year-to-date, the number of homes sold was down 25.9% in November. Prior to 2022 home sales have rarely dropped below 400,000 in decades. They will end the year somewhere around 250,000. While historically interest rates are not that high, compared to the lowest rates in 50-years during COVID the shock of going from the lowest rates in decades to the highest rates in 23-years has caused many potential home sellers to put off their move. In a normal year about 50% of sales are what we call move-up buyers. Those are people selling a home to purchase another. When your mortgage is at a 3% rate, it’s difficult to sell it and purchase another with a mortgage at a 7% rate. For example, if you own a $2 million dollar home with a $1 million mortgage at 3%, your payment with taxes and insurance is about $4,500. If you put your $1 million in equity down on your new $4 million dollar home and obtained a $3 million loan at 6.5% (down from almost 8% two months ago) your payment with tax and insurance would be around $24,000 a month. That’s a big jump and has caused many people to stay in their current home that would normally move to a new home. When people put off their move it reduces the number of homes for sale. This is exactly what is happening now. The statewide median price paid for a home in November was $822,200, up 6.2% from a revised $774,150 a year ago. There was a 3-month supply of homes on the market, up from a 2.7-month supply of homes for sale in October, and down from a 3.2-month supply one year ago.

The graph below shows sales data by county in Southern California.

Stock markets ended the month sharply higher – Investors pushed stocks higher this month following news from the Fed that they are shifting their monetary policy. For the first time in two years the Fed has come out and acknowledged that their tightening campaign has tamed inflation and that they feel that there could be as many as three rate cuts next year. With their key interest rates at their highest levels in 23 years, rate cuts are something that investors are looking forward to. The Dow Jones Industrial Average closed the month at 37,689.40, up 4.8% from 35,950.89 on November 30. It gained 13.7% in 2023. The S&P 500 closed the month at 4,769.89, up 4.4% from 4,567.90 last month. It gained 24.2% in 2023. The NASDAQ closed the month at 15,011.35, up 5.3% from 14,262.22 last month. It is up 43.4% from its close in 2022. U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 3.88%, down from 4.38% last month. The 30-year treasury bond yield ended the month at 4.03%, down from 4.54% last month. We watch bond yields because mortgage rates often follow treasury bond yields. Mortgage rates – The Freddie Mac Primary Mortgage Survey reported that mortgage rates as of December 28, 2023, for the most popular loan products were as follows: The 30-year fixed mortgage rate was 6.61%, down from 7.22% at the end of November. The 15-year fixed was 5.93%, down from 6.56% at the end of November. Home sales figures are released by the California Association of Realtors and the National Association of Realtors on the third week of the month for the previous month. These are November’s results. U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 3.82 million units on a seasonally adjusted annualized rate in November, down 7.3% from an annualized rate of 4.12 million in November 2022. The median price for a home in the U.S. in November was $387,600, up 4% from $372,700 last November. There was a 3.5-month supply of homes for sale in November, up from a 3.3-month supply last November. First-time buyers accounted for 31% of all sales. Investors and second-home purchases accounted for 14% of all sales. All-cash purchases accounted for 29% of all sales. Foreclosures and short sales accounted for 1% of all sales. California Association of Realtors November existing-home sales report – The California Association of Realtors reported that existing-home sales totaled 223,940 units on a seasonally adjusted annualized basis in November, down 7.4% from October. November marked the third straight month of the annualized sales rate dropping under 250,000, a level that was thought could never happen, and the 29th straight month of year-over-year declines in sales. Year-to-date, the number of homes sold was down 25.9% in November. Prior to 2022 home sales have rarely dropped below 400,000 in decades. They will end the year somewhere around 250,000. While historically interest rates are not that high, compared to the lowest rates in 50-years during COVID the shock of going from the lowest rates in decades to the highest rates in 23-years has caused many potential home sellers to put off their move. In a normal year about 50% of sales are what we call move-up buyers. Those are people selling a home to purchase another. When your mortgage is at a 3% rate, it’s difficult to sell it and purchase another with a mortgage at a 7% rate. For example, if you own a $2 million dollar home with a $1 million mortgage at 3%, your payment with taxes and insurance is about $4,500. If you put your $1 million in equity down on your new $4 million dollar home and obtained a $3 million loan at 6.5% (down from almost 8% two months ago) your payment with tax and insurance would be around $24,000 a month. That’s a big jump and has caused many people to stay in their current home that would normally move to a new home. When people put off their move it reduces the number of homes for sale. This is exactly what is happening now. The statewide median price paid for a home in November was $822,200, up 6.2% from a revised $774,150 a year ago. There was a 3-month supply of homes on the market, up from 2.7-month supply of homes for sale in October, and down from a 3.2-month supply one year ago. The graph below shows sales data by county in Southern California.

Stock markets ended the week almost unchanged to close out a banner year – The Dow Jones Industrial Average closed the week at 37,689.40, up 0.2% from 37,385.37 last week. It ended the year up 12.7%. The S&P 500 closed the week at 4,769.89, up 0.7% from 4,754.63 last week. It ended the year up 24.2%. The Nasdaq closed the week at 15,011.35, up 0.1% from 14,992.67 last week. It closed 43.4% up in 2023. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 3.88% down slightly from 3.90% last week. The 30-year treasury bond yield ended the week at 4.03%, down slightly from 4.05% last week. We watch bond yields because mortgage rates follow bond yields. Mortgage rates are at their lowest point since June – 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 December 28, 2023, were as follows: The 30-year fixed mortgage rate was 6.61%, down from 6.67% last week. The 15-year fixed was 5.93%, down from 5.95% last week. Rates dropped further at the end of the week. Next week’s 30-year should be close to 6.5%. The graph below shows the trajectory of mortgage rates over the past year. Have a great weekend!

As we bid farewell to another year and welcome the promise of a new one, Los Angeles comes alive with a plethora of events and celebrations to ring in New Year’s Eve 2024. From spectacular fireworks displays to themed parties and live performances, there’s something for everyone to enjoy. Here are some of the top local events to consider for your New Year’s Eve celebration:

Marina del Rey New Year’s Eve Fireworks

Where: Marina del Rey
When: December 31, 2023 What: Marina del Rey sets the night ablaze with two dazzling fireworks displays at 9 pm and midnight. These pyrotechnic spectacles light up the waterfront, near Burton Chace Park. If you’re looking for family-friendly fun, don’t miss the “glow party” at the park from 7 pm to midnight. While some restaurants offer ticketed dinners, you can also find free spots along the water to enjoy the fireworks.

N.Y.E.L.A.

Where: Downtown
When: December 31, 2023 What: For an affordable and family-friendly New Year’s Eve celebration, head to DTLA’s Grand Park. Surrounded by iconic landmarks like the Music Center and City Hall, Grand Park transforms into a cultural hub for the holiday. City Hall becomes a massive canvas for a countdown projection, making it a unique way to welcome the new year.

Prohibition NYE

Where: Downtown
When: December 31, 2023 What: Step back in time to the Roaring Twenties at this Prohibition era-themed NYE party held in the Art Deco marvel of Union Station. With a DJ set from Chromeo, live jazz, burlesque performances, and custom cocktails, it’s a glamorous affair. Dress to impress in your best 1920s attire and be part of the countdown as a 60-foot custom ball drops.

NYEx10

Where: Los Feliz
When: December 31, 2023 What: Big Bar in Los Feliz offers a unique New Year’s Eve experience with 10 countdowns, each accompanied by original cocktails and themed playlists. This year’s event takes on an outer space theme, promising a celestial celebration. Admission is free, and there’s a complimentary champagne toast at midnight.

New Year’s Eve at Dynasty Typewriter
Where: Westlake
When: December 31, 2023 What: Dynasty Typewriter presents a comedy extravaganza for New Year’s Eve. Enjoy stand-up performances by talented comedians like Ify Nwadiwe, Luke Mones, Megan Gailey, Max & Nicky Weinbach, and Aparna Nancherla. Every ticket includes a champagne toast at the stroke of midnight.

EVE at Universal Studios Hollywood

Where: Universal City
When: December 31, 2023 What:Experience the thrill of New Year’s Eve at Universal Studios Hollywood. Enjoy the rides during the day and stick around for a spectacular midnight fireworks display. Multiple genre-themed party areas await you, complete with desserts, beer, wine, and champagne options.

New Year’s Eve at Knott’s Merry Farm

Where: Buena Park
When: December 31, 2023 What: Knott’s Berry Farm transforms into Knott’s Merry Farm during the holiday season. For New Year’s Eve, the park extends its hours, offering live music, a countdown to midnight, and a festive balloon drop at 9 pm. It’s a perfect way to celebrate with family and friends.

WeHo NYE Festival at E.P. & L.P.

Where: West Hollywood
When: December 31, 2023 What: E.P. & L.P. in Melrose hosts a rave-inspired party across its restaurant and rooftop levels. The evening starts with an optional open bar and passed appetizers, followed by DJ sets and a midnight balloon drop. Arrive before 10:30 pm for a complimentary drink.

Last Night with Rhonda

Where: West Hollywood
When: December 31, 2023 What: A Club Called Rhonda’s iconic New Year’s Eve party takes place beneath the disco ball ceiling at Sunset at EDITION. Enjoy sets from renowned DJs, including Carl Craig, Junior Sanchez, and Goddollars & Paradise, as you dance your way into 2024.

Holiday Ice Rink Pershing Square

Where: Downtown Financial District
When: Until January 7, 2024 What: Embrace the winter spirit in downtown LA at the Pershing Square outdoor holiday skating rink. Glide on the ice against the backdrop of skyscrapers and enjoy the festive atmosphere. Skate rentals are included with admission.

L.A. Kings Holiday Ice

Where: South Park
When: Until December 31, 2023 What: Head to L.A. Live for the annual L.A. Kings ice skating rink. Skate around the dazzling Christmas tree at the center of the outdoor rink and be enchanted by an LED holiday light show on the plaza screens.

New Year’s Eve at Skybar

Where: West Hollywood
What: December 31, 2023 What: Let Skybar at the Mondrian Hotel host your New Year’s Eve celebration. Your ticket includes a four-hour open bar and a midnight champagne toast. Enjoy panoramic views of the city from the rooftop bar while dressed in your cocktail attire.

Lightscape

Where: Arcadia
When: Until January 2, 2024 What: Immerse yourself in the second edition of Lightscape at the L.A. County Arboretum. Wander along a mile-long pathway adorned with illuminated installations and uplit trees. Capture stunning photos inside the cathedral-like light tunnel.

Pink Martini

Where: Downtown
When: December 31, 2023 What: Experience the enchanting sounds of Pink Martini at Disney Hall for a special New Year’s Eve performance. This “little orchestra” from Portland, Oregon, blends classical, jazz, pop, and international influences for a memorable musical evening.

As you plan your New Year’s Eve celebration, consider these exciting events across Los Angeles. Whether you prefer fireworks, live entertainment, or a themed party, there’s no shortage of ways to welcome 2024 in style.

Mortgage rates are at their lowest point since June – 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 December 28, 2023, were as follows: The 30-year fixed mortgage rate was 6.61%, down from 6.67% last week. The 15-year fixed was 5.93%, down from 5.95% last week. Rates dropped further at the end of the week. Next week’s 30-year should be close to 6.5%.

The graph below shows the trajectory of mortgage rates over the past year.

Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Their mandate is to provide liquidity, stability, and affordability to the U.S. housing market.

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 December 21, 2023, were as follows: The 30-year fixed mortgage rate was 6.67%, down from 6.95% last week. The 15-year fixed was 5.95%, down from 6.38% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Their mandate is to provide liquidity, stability, and affordability to the U.S. housing market.

California Association of Realtors November existing-home sales report:

The California Association of Realtors reported that existing home sales totaled 223,940 units on a seasonally adjusted annualized basis in November, down 7.4% from October. November marked the third straight month of the annualized sales rate dropping under 250,000, a level that was thought could never happen, and the 29th straight month of year-over-year declines in sales. Year-to-date, the number of homes sold was down 25.9% in November.

Prior to 2022 home sales have not dropped below 400,000 in decades. High-interest rates have caused many potential home sellers to put off their move. In a normal year about 50% of sales are what we call move-up buyers. Those are people selling a home to purchase another. When your mortgage is at a 3% rate, it’s difficult to sell it and purchase another with a mortgage at a 7% rate. For example, if you own a $2 million dollar home with a $1 million mortgage at 3%, your payment with taxes and insurance is about $4,500. If you put your $1 million in equity down on your new $4 million dollar home and obtained a $3 million loan at 6.5% (down from almost 8% two months ago) your payment with tax and insurance would be around $24,000 a month. That’s a big jump. When people put off their move it reduces the number of homes for sale. This is exactly what is happening now.

The statewide median price paid for a home in November was $822,200, up 6.2% from a revised $774,150 a year ago.

There was a 3-month supply of homes on the market, up from a 2.7-month supply of homes for sale in October, and down from a 3.2-month supply one year ago.

The graph below shows sales data by county in Southern California.