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 April 11, 2024, were as follows: The 30-year fixed mortgage rate was 6.88%, up from 6.82% last week. The 15-year fixed was 6.16%, up from 6.06% 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.

This week investors were very unsure of what to expect from the economy due to several factors. One was inflationary pressure due to the strength of the economy. At the end of 2023, it appeared that the economy was finally slowing, inflation was dropping, and the labor market was beginning to cool. Investors were expecting the Fed to shift from a restrictive monetary policy to a more neutral one and begin to cut rates in March. In the first three months of the year, the economy has picked up steam. Inflation reports show that the inflation rate which had steadily worked its way down from its peak 9.1% year-over-year increase in June 2022 to about a 3% year-over-year increase by the end of 2023, has now stalled remaining mostly unchanged through the first quarter. Hiring has picked up and job gains have far outpaced expectations. Experts have given up hopes of four rate cuts this year and now expect one to three without the first cut until June or July. That has increased bond yields and mortgage rates to their highest levels since last fall. Oil prices have also risen to their highest levels in over six months due to geopolitical tensions in the Middle East. Employers added another 303,000 new jobs in March – The Department of Labor and Statistics reported that 303,000 new jobs were added in March. That blew away the 200,000 new jobs that analysts expected, and it marked the fourth straight month with job gains above 200,000 and the 39th consecutive month of job growth. The unemployment rate dropped to 3.8% in March, down from 3.9% in February, marking 26 straight months of unemployment below 4%. That has not happened since the 1960s. Investors are puzzled as to how the economy and labor market have remained so strong after 11 rate hikes and the highest Fed interest rates in 24 years. Average hourly wages increased 4.1% year-over-year in March, down from 4.3% in February, which was the only part of the report that does not put pressure on inflation. Bond yields and mortgage rates ended the week at their highest levels since last October. Stock markets – The Dow Jones Industrial Average closed the week at 38,904.04, down 2.3% from 39,807.37 last week. It is up 3.2% year-to-date. The S&P 500 closed the week at 5,204.34, down 1% from 5,254.46 last week. The S&P is up 9.1% year-to-date. The Nasdaq closed the week at 16,248.52, down 0.8% from 16,379.46 last week. It is up 8.2% year-to-date. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.39%, up from 4.22% last week. The 30-year treasury bond yield ended the week at 4.54%, up from 4.39% last week. We watch bond yields because mortgage rates follow bond yields. 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 April 4, 2024, were as follows: The 30-year fixed mortgage rate was 6.82%, up from 6.79% last week. The 15-year fixed was 6.06%, down from 6.11% 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.

Have a great weekend!

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 April 4, 2024, were as follows: The 30-year fixed mortgage rate was 6.82%, up from 6.79% last week. The 15-year fixed was 6.06%, down from 6.11% 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.

Economic news this month was largely in line with expectations. Inflation news showed that inflation indexes showed that both consumer and producer prices held steady at just over a 3% year-over-year increase. That was what analysts expected. Inflation is above the Fed’s 2% target, but well off its highs of a 9% year-over-year peak in June 2022. Unfortunately, it has hovered above 3% since last June. That last 1% to get to the Fed’s target of 2% has been very stubborn despite the highest interest rates in 24 years. The labor market has remained tight although the unemployment rate ticked up above its 60-year low to a 50-year low in February. Investors who felt that the Fed would soon begin to lower rates have been disappointed by the strength of the economy and labor market. It was widely felt that the Fed would begin lowering rates in March just a few months ago. Some investors felt that it was possible to not see a drop this year, but the Fed stated that they still expect to make three .25% rate reductions this year. The latest poll of economists had about 65% expecting the first drop in June. Real Estate sales have picked up as buyer sentiment has increased from its low levels last year, and more sellers are beginning to put their homes on the market.

Stock Markets – The Dow Jones Industrial Average closed the month at 39,807.37 up 2% from 38,996.39 on January 31, 2023. It is up 5.6% year-to-date. The S&P closed the month at 5,254.35, up 3.1% from 5,096.27 last month. It is up 10.2% year-to-date. The NASDAQ closed the month at 16,379.46, up 1.8% from 16,091.92 last month. It is up 9.1% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 4.20%, down from 4.25% last month. The 30-year treasury bond yield ended the month at 4.34%, down from 4.38% 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 March 28, 2024, for the most popular loan products were as follows: The 30-year fixed mortgage rate was 6.79%, down from 6.94% at the end of February. The 15-year fixed was 6.11%, down from 6.26% last month.

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

Home sales data is released on the third week of the month for the previous month by the National Association of Realtors and the California Association of Realtors. These are February’s home sales figures.

U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 4.38-million units on a seasonally adjusted annualized rate in February, down 3.3% from an annualized rate of 4.53 million in February 2023. The median price for a home in the U.S. in January was 384,100, up 5.7% from $363,600 last February. There was a 2.9-month supply of homes for sale in February, up from a 2.6-month supply one year ago. First-time buyers accounted for 32% of all sales. Investors and second-home purchases accounted for 21% of all sales. All-cash purchases accounted for 33% of all sales. Foreclosures and short salesaccounted for 3% of all sales.

Year-over-year home prices jumped almost 10% in California – The California Association of Realtors reported that existing-home sales totaled 290,020 in February, up 12.8% from 257,040 closed sales in January and up 1.3% from a revised 286,290 homes sold on an annualized basis last January. There was a 3-month supply of homes on the market in February, down up from a 3.2-month month supply of homes in January and down from a 3.1-month supply one year ago. The statewide median price paid for a home in February was $809,460, up 9.7% from a revised median price of $789,480 last February.

The graph below shows home sales figures by county in Southern California.

Economic news this week – On Thursday it was announced that the U.S. economy grew at a solid 3.4% annual pace in the last quarter of 2023, up from a previously estimated rate of 3.2%. The PCE (personal consumption expenditures) index, the Fed’s favorite gauge of inflation, was released on Friday. It showed that the core PCE increased 2.8% year-over-year. That was in line with analysts’ expectations.

Stock markets – The Dow Jones Industrial Average closed the week at 39,807.37, up 0.8%from 39,475.90 last week. It is up 5.6% year-to-date. The S&P 500 closed the week at 5,254.35, up 0.4% from 5,234.18 last week. The S&P is up 10.2% year-to-date. The Nasdaq closed the week at 16,379.46 down 0.3% from 16,428.82 last week. It is up 9.1% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.22%, down from 4.31% last week. The 30-year treasury bond yield ended the week at 4.39%, down from 4.43% last week. We watch bond yields because mortgage rates follow bond yields.

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 March 28, 2024, were as follows: The 30-year fixed mortgage rate was 6.79%, down from 6.87% last week. The 15-year fixed was 6.11%, down from 6.21% last week.

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

Home sales data is released on the third week of the month for the previous month by the National Association of Realtors and the California Association of Realtors. These are February’s home sales figures.

U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 4.38-million units on a seasonally adjusted annualized rate in February, down 3.3% from an annualized rate of 4.53 million in February 2023. The median price for a home in the U.S. in January was 384,100, up 5.7% from $363,600 last February. There was a 2.9-month supply of homes for sale in February, up from a 2.6-month supply one year ago. First-time buyers accounted for 32% of all sales. Investors and second-home purchases accounted for 21% of all sales. All-cash purchases accounted for 33% of all sales. Foreclosures and short sales accounted for 3% of all sales.

Year-over-year home prices jumped almost 10% in California – The California Association of Realtors reported that existing-home sales totaled 290,020 in February, up 12.8% from 257,040 closed sales in January and up 1.3% from a revised 286,290 homes sold on an annualized basis last January. There was a 3-month supply of homes on the market in February, down up from a 3.2-month month supply of homes in January and down from a 3.1-month supply one year ago. The statewide median price paid for a home in February was $809,460, up 9.7%from a revised median price of $789,480 last February.

The graph below shows home sales figures by county in Southern California.

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 March 28, 2024, were as follows: The 30-year fixed mortgage rate was 6.79%, down from 6.87% last week. The 15-year fixed was 6.11%, down from 6.21% 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.

This week the Fed left interest rates unchanged. In their remarks, they said that they still expect to make three rate drops in 2024 despite inflation remaining above their target rate. They also commented on the strength of the labor market and that they expect unemployment to remain low. They also made reference to easing of other quantitative policies designed to slow the economy. Investors took the news well and stocks surged while bond yields and mortgage rates dropped on expectations of lower rates soon.

Stock markets – The Dow Jones Industrial Average closed the week at 39,475.90, up 2% from 38,714.77 last week. It is up 4.7% year-to-date.  The S&P 500 closed the week at 5,234.18, up 2.3% from 5,117.09 last week.  The S&P is up 9.8% year-to-date. The Nasdaq closed the week at 16,428.82 up 2.8% from 15,973.17 last week. It is up 9.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.22%, down from 4.31% last week. The 30-year treasury bond yield ended the week at 4.39%, down from 4.43%last week. We watch bond yields because mortgage rates follow bond yields.

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 March 21, 2024, were as follows: The 30-year fixed mortgage rate was 6.87%, up from 6.74% last week. The 15-year fixed was 6.21%, up from 6.16% last week.

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

Year-over-year home prices jumped almost 10% in California  – The California Association of Realtors reported that existing-home sales totaled 290,020 in February, up 12.8% from 257,040 closed sales in January and up 1.3% from a revised 286,290 homes sold on an annualized basis last January.There was a 3-month supply of homes on the market in February, down up from a 3.2-month month supply of homes in January and down from a 3.1-month supply one year ago.  The statewide median price paid for a home in February was $809,460, up 9.7% from a revised median price of $789,480 last February.

The graph below shows home sales figures by county in Southern California.

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 March 21, 2024, were as follows: The 30-year fixed mortgage rate was 6.87%, up from 6.74% last week. The 15-year fixed was 6.21%, up from 6.16% last week.