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November marked the best month of the year for stock markets. Ending the month at all-time highs, stock markets began to surge when President Trump won the election, as Investors expect easing regulations and lower corporate tax rates. At the same time bond yields and mortgage rates increased as fears of tariffs and deportations could fuel inflation; however, bond yields and mortgage rates dropped in the last week of the month. Inflation gauges did rise slightly in October. The Consumer Price Index (CPI) showed that consumer process increased 2.6% year-over-year in October, up from a 2.4% year-over-year increase in September. Core CPI, which excludes food and energy prices, increased 3.3% year-over-year, unchanged from September’s annual increase. The Producer Price Index (PPI) also increased in October. It measures wholesale prices which increased 2.4% year-over-year in October, its highest level in 4 months, and up from a 1.9% year-over-year increase in September. The Core PPI level came in at a 3.5% year-over-year increase in October, up from a 3.3% increase in September. The Personal Consumption Expenditure Price Index (PCE) showed a 12-month inflation rate of 2.3%, up from a 2.1% annual rate in September. Core PCE increased 2.8% year-over-year. These increases were in line with analysts’ expectations as increased retail sales, consumer confidence, and other data pointed to the economy picking up.

The chart below shows the CPI rate since 2021. Even though it moved up last month, it’s still much lower than it has been over the past two years.

Stock Markets -The Dow Jones Industrial Average closed the month at 44,910.65, up 7.5% from 41,763.46, on October 30, 2024. It is up 19.2% year-to-date. The S&P 500 closed the month at 6,032.38, up 5.7% from 5,705.45 last month. It is up 26.5% year-to-date. The NASDAQ closed the month at 19,218.17, up 6.3% from 18,085.15 last month. It is up 28% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 4.18%, down from 4.28% last month. The 30-year treasury bond yield ended the month at 4.36%, down from 4.47% last month. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – Mortgage rates jumped in October on fears of inflation picking up in future months based on stronger economic reports. 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 November 27, 2024, were as follows: The 30-year fixed mortgage rate was 6.81%, up from 6.72% at the end of September. The 15-year fixed was 6.10%, up from 5.99% last month.

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

U.S. existing-home sales October 2024 – The National Association of Realtors reported that existing-home sales totaled 3.96 million units on a seasonally adjusted annualized rate in October, up 2.9% from an annualized rate of 3.85 million units last October. That marked the first year-over-year increase in sales in 3 years. The median price for a home sold in the U.S. in October was $407,200, up 4% from $391,600 one year ago. There was a 4.2-month supply of homes for sale in October, up from a 3.6-month supply one year ago. First-time buyers accounted for 27% of all sales. Investors and second-home purchases accounted for 17% of all sales. All cash purchases accounted for 27% of all sales. Foreclosures and short sales accounted for 2% of all sales.

October California existing-home sales report – The California Association of Realtors reported that existing-home sales totaled 264,870 on an annualized rate in October, up 4.7% from 253,010 homes on an annualized rate in September, and up 5.8% from a revised 241,910 homes sold on an annualized basis last October. The statewide median price paid for a home in October was $888,740, up 2.4% from $868,150 in September, and up 5.8% from $839.990 one year ago. There was a 3.1- month supply of homes for sale in October, down from a 3.6-month supply of homes for sale in September, but up from a 2.7-month supply in October 2023.

The graph below lists home sales data by county in Southern California.

November marked the best month of the year for stock markets. Ending the month at all-time highs, stock markets began to surge when President Trump won the election, as Investors expect easing regulations and lower corporate tax rates. At the same time bond yields and mortgage rates increased as fears of tariffs and deportations could fuel inflation; however, bond yields and mortgage rates dropped in the last week of the month. Inflation gauges did rise slightly in October. The Consumer Price Index (CPI) showed that consumer process increased 2.6% year-over-year in October, up from a 2.4% year-over-year increase in September. Core CPI, which excludes food and energy prices, increased 3.3% year-over-year, unchanged from September’s annual increase. The Producer Price Index (PPI) also increased in October. It measures wholesale prices which increased 2.4% year-over-year in October, its highest level in 4 months, and up from a 1.9% year-over-year increase in September. The Core PPI level came in at a 3.5% year-over-year increase in October, up from a 3.3% increase in September. The Personal Consumption Expenditure Price Index (PCE) showed a 12-month inflation rate of 2.3%, up from a 2.1% annual rate in September. Core PCE increased 2.8% year-over-year. These increases were in line with analysts’ expectations as increased retail sales, consumer confidence, and other data pointed to the economy picking up.

Stock markets -The Dow Jones Industrial Average closed the week at 44,910.65, up 1.4% from 44,296.51 last week. It is up 19.2% year-to-date. The S&P 500 closed the week at 6.032.38, up 1.1% from 5,969.34 last week. The S&P is up 26.5% year-to-date. The Nasdaq closed the week at 19,218.17, up 1.1% from 19,003.65 last week. It is up 28% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.18%, down from 4.41% last week. The 30-year treasury bond yield ended the week at 4.36%, down from 4.60% 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 November 21st, 2024, were as follows: The 30-year fixed mortgage rate was 6.84%, up from 6.78% last week. The 15-year fixed was 6.02%, up from 5.99% last week.

Economic update for the month ending November 30, 2024

The chart below shows the CPI rate since 2021. Even though it moved up last month, it’s still much lower than it has been over the past two years.

Stock Markets -The Dow Jones Industrial Average closed the month at 44,910.65, up 7.5% from 41,763.46, on October 30, 2024. It is up 19.2% year-to-date. The S&P 500 closed the month at 6,032.38, up 5.7% from 5,705.45 last month. It is up 26.5% year-to-date. The NASDAQ closed the month at 19,218.17, up 6.3% from 18,085.15 last month. It is up 28% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 4.18%, down from 4.28% last month. The 30-year treasury bond yield ended the month at 4.36%, down from 4.47% last month. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – Mortgage rates jumped in October on fears of inflation picking up in future months based on stronger economic reports. 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 November 27, 2024, were as follows: The 30-year fixed mortgage rate was 6.81%, up from 6.72% at the end of September. The 15-year fixed was 6.10%, up from 5.99% last month.

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

U.S. existing-home sales October 2024 – The National Association of Realtors reported that existing-home sales totaled 3.96 million units on a seasonally adjusted annualized rate in October, up 2.9% from an annualized rate of 3.85 million units last October. That marked the first year-over-year increase in sales in 3 years. The median price for a home sold in the U.S. in October was $407,200, up 4% from $391,600 one year ago. There was a 4.2-month supply of homes for sale in October, up from a 3.6-month supply one year ago. First-time buyers accounted for 27% of all sales. Investors and second-home purchases accounted for 17% of all sales. All cash purchases accounted for 27% of all sales. Foreclosures and short sales accounted for 2% of all sales.

October California existing-home sales report – The California Association of Realtors reported that existing-home sales totaled 264,870 on an annualized rate in October, up 4.7% from 253,010 homes on an annualized rate in September, and up 5.8% from a revised 241,910 homes sold on an annualized basis last October. The statewide median price paid for a home in October was $888,740, up 2.4% from $868,150 in September, and up 5.8% from $839.990 one year ago. There was a 3.1- month supply of homes for sale in October, down from a 3.6-month supply of homes for sale in September, but up from a 2.7-month supply in October 2023.

The graph below lists home sales data by county in Southern California.

Have a great weekend!

Explore our website for the most up-to-date information on real estate data and local news!

RodeoRe.com

Stock markets – The Dow Jones Industrial Average closed the week at 44,296.51, up 2% from 43,444.99 last week. It is up 17.5% year-to-date. The S&P 500 closed the week at 5,969.34, up 1.7% from 5,870.62 last week. The S&P is up 25.2% year-to-date. The Nasdaq closed the week at 19,003.65, up 1.7% from 18,680.12 last week. It is up 26.6% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.41%, almost unchanged from 4.43% last week. The 30-year treasury bond yield ended the week at 4.60%, unchanged from 4.60% 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 November 21st, 2024, were as follows: The 30-year fixed mortgage rate was 6.84%, up from 6.78% last week. The 15-year fixed was 6.02%, up from 5.99% 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 California Association of Realtors and the National Association of Realtors. These are October’s home sales figures.

U.S. existing-home sales October 2024 – The National Association of Realtorsreported that existing-home sales totaled 3.96 million units on a seasonally adjusted annualized rate in October, up 2.9% from an annualized rate of 3.85 million units last October. That marked the first year-over-year increase in sales in 3 years. The median price for a home sold in the U.S. in October was $407,200, up 4% from $391,600 one year ago. There was a 4.2-month supply of homes for sale in October, up from a 3.6-month supply one year ago. First-time buyers accounted for 27% of all sales. Investors and second-home purchases accounted for 17% of all sales. All cash purchases accounted for 27% of all sales. Foreclosures and short salesaccounted for 2% of all sales.

October California existing-home sales report – The California Association of Realtors reported that existing-home sales totaled 264,870 on an annualized rate in October, up 4.7% from 253,010 homes on an annualized rate in September, and up 5.8% from a revised 241,910 homes sold on an annualized basis last October. The statewide median price paid for a home in October was $888,740, up 2.4% from $868,150 in September, and up 5.8% from $839.990 one year ago. There was a 3.1- month supply of homes for sale in October, down from a 3.6-month supply of homes for sale in September, but up from a 2.7-month supply in October 2023.

The graph below lists home sales data by county in Southern California.

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 November 21st, 2024, were as follows:

The 30-year fixed mortgage rate was 6.84%, up from 6.78% last week. The 15-year fixed was 6.02%, up from 5.99% 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.

Explore our website for the most up-to-date information on real estate data and local news! RodeoRe.com

Inflation ticked up in October – The Consumer Price Index (CPI) showed that consumer process increased 2.6% year-over-year in October, up from a 2.4% year-over-year increase in September. Core CPI, which excludes food and energy prices, increased 3.3% year-over-year, unchanged from its September annual increase. The Producer Price Index (PPI) also increased in October. It measures wholesale prices which increased 2.4% year-over-year in October, its highest level in 4 months, and up from a 1.9% year-over-year increase in September. The Core PPI level came in at a 3.5% year-over-year increase in October, up from a 3.3% increase in September. These increases were in line with analysts’ expectations as increased retail sales, consumer confidence, and other data pointed to the economy picking up. They forecasted inflation heating up a bit. In fact, Fed Chairman Powell spoke on Thursday. He also spoke about the signs of strength in the economy. While he said that the Fed still intends to continue moving down to more neutral rates, he stated “the economy is not sending any signals that we need to be in a hurry to lower rates.” We have seen long-term bond yields and mortgage rates increase sharply since the first Fed rate drop in September due to signs that the economy appears to be picking up steam.

The chart below shows the CPI rate since 2021. Even though it moved up last month, it’s still much lower than it has been over the past two years.

Stock markets – The Dow Jones Industrial Average closed the week at 43,444.99, down 1.2% from 43,988.89 last week. It is up 15.3% year-to-date. The S&P 500 closed the week at 5,870.62, down 2.1% from 5,995.54 last week. The S&P is up 23.1% year-to-date. The Nasdaq closed the week at 18,680.12, down 3.2% from 19,289.78 last week. It is up 24.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.43%, up from 4.30% last week. The 30-year treasury bond yield ended the week at 4.60%, up from 4.47% 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 November 14th, 2024, were as follows: The 30-year fixed mortgage rate was 6.78%, down from 6.79% last week. The 15-year fixed was 5.99%, down from 6.00% 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 November 14th, 2024, were as follows:

The 30-year fixed mortgage rate was 6.78%, down from 6.79% last week. The 15-year fixed was 5.99%, down from 6.00% 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 week centered around the election and the Fed. When word spread that President Trump had won the election the stock market surged on expectations of less regulation and lower corporate tax rates than had Vice President Harris won. The Dow gained over 1,200 points on Wednesday after Trump was declared the winner. Bond yields spiked as investors feared that tariffs would increase prices for imports and that fewer undocumented immigrants would raise labor prices, both of which could reignite inflation. For example, the 10-year treasury bond yield was 4.26% on election day, Tuesday, and jumped to 4.42% on Wednesday. Fortunately, on Thursday Fed Chairman, Powell announced that the Fed was dropping their benchmark rates by ¼% and stated a possibility of another drop in December as well as further drops in 2025. When asked if he anticipated the possibility of rate increases next year at a press conference, he said that he could not rule out anything but anticipates further drops not increases as the Fed brings rates to a less restrictive level. Both his statements and the digesting of the election results had investors feeling that the sharp rise in bond yields was an overaction and the 10-year ended the week at 4.30%, down from last Friday and just slightly higher than on election day. Next week we will get some important inflation news. The Consumer Price Index will be released by the government on Wednesday and the Producer Price Index will be released on Thursday. Should those indicate that inflation is still moderating it will be good for mortgage rates and bond yields.

Stock markets – Stock market indexes closed the week at record highs –Expectations of less regulation and lower corporate tax rates drove stocks to record highs in their best week of the year. The Dow Jones Industrial Average closed the week at 43,988.89, down 4.6% from 42,052.19 last week. It is up 16.7% year-to-date. The S&P 500 closed the week at 5,995.54, up 4.8% from 5,718.80 last week. The S&P is up 25.7% year-to-date. The Nasdaq closed the week at 19,289.78, up 5.8 % from 18,239.92 last week. It is up 28.5% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.30%, down from 4.37% last week. The 30-year treasury bond yield ended the week at 4.47%, down from 4.51% 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 October 31, 2024, were as follows: The 30-year fixed mortgage rate was 6.79%, up from 6.72% last week. The 15-year fixed was 6.00%, unchanged from 5.99% 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!