Category: Uncategorized

Stock Markets – The Dow Jones Industrial Average closed the month at 41,563.08, up 1.8% from 40,842.79, on July 31, 2024. It is up 10.3% year-to-date. The S&P 500 closed the month at 5,648.40, up 2.3% from 5,522.30 last month. It is up 18.4% year-to-date. The NASDAQ closed the month at 17,713.63, up 0.1% from 17,599.40 last month. It is up 18% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 3.91%, down from 4.09% last month. The 30-year treasury bond yield ended the month at 4.20%, down from 4.35% last month. We watch bond yields because mortgage rates often follow treasury 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 August 29th, 2024, were as follows: The 30-year fixed mortgage rate was 6.35%, down from 6.46% last week. The 15-year fixed was 5.51%, down from 5.62% 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.

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 July’s home sales figures.

U.S. existing-home sales July 2024 – The National Association of Realtors reported that existing-home sales totaled 3.95 million units on a seasonally adjusted annualized rate in July, down 2.5% from an annualized rate of 4.05 million last July. The median price for a home in the U.S. in June was $422,600, up 4.2% from $410,109 one year ago. There was a 4-month supply of homes for sale in June, up from a 3.3-month supply one year ago. First-time buyers accounted for 29% of all sales. Investors and second-home purchases accounted for 13% of all sales. All cash purchases accounted for 27% of all sales. Foreclosures and short sales accounted for 1% of all sales.

July California existing-home sales report – Prices down slightly from June, but up 6.5% from one year ago – The California Association of Realtors reported that existing-home sales totaled 278,810 on an annualized rate in July, up 4.7% from a revised 268,840 homes sold on an annualized basis last July. There was a 2.9-month supply of homes for sale, up from a 2.5-month supply one year ago. The statewide median price paid for a home in July was $886,560, down 1.6% from $900,720 in June and, up 6.5% from $832,530 one year ago.

Have a great weekend!

The graph below shows the CPI rate from 2021 to now.

Stock Markets – The Dow Jones Industrial Average closed the month at 41,563.08, up 1.8% from 40,842.79, on July 31, 2024. It is up 10.3% year-to-date. The S&P 500 closed the month at 5,648.40, up 2.3% from 5,522.30 last month. It is up 18.4% year-to-date. The NASDAQ closed the month at 17,713.63, up 0.1% from 17,599.40 last month. It is up 18% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 3.91%, down from 4.09% last month. The 30-year treasury bond yield ended the month at 4.20%, down from 4.35% last month. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates reached their lowest levels in over a year – 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 19, 2024, were as follows: The 30-year fixed mortgage rate was 6.35%, down from 6.78% at the end of May. The 15-year fixed was 5.51%, down from 6.07% last month.

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.

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 July’s home sales figures.

U.S. existing-home sales July 2024 – The National Association of Realtors reported that existing-home sales totaled 3.95 million units on a seasonally adjusted annualized rate in July, down 2.5% from an annualized rate of 4.05 million last July. The median price for a home in the U.S. in June was $422,600, up 4.2% from $410,109 one year ago. There was a 4-month supply of homes for sale in June, up from a 3.3-month supply one year ago. First-time buyers accounted for 29% of all sales. Investors and second-home purchases accounted for 13% of all sales. All cash purchases accounted for 27% of all sales. Foreclosures and short sales accounted for 1% of all sales.

July California existing-home sales report – Prices down slightly from June, but up 6.5% from one year ago – The California Association of Realtors reported that existing-home sales totaled 278,810 on an annualized rate in July, up 4.7% from a revised 268,840 homes sold on an annualized basis last July. There was a 2.9-month supply of homes for sale, up from a 2.5-month supply one year ago. The statewide median price paid for a home in July was $886,560, down 1.6% from $900,720 in June and, up 6.5% from $832,530 one year ago.

Stock markets – The Dow Jones Industrial Average closed the week at 41,175.08 up 1.3% from 40,656.79 last week. It is up 9.2% year-to-date. The S&P 500 closed the week at 5,634.61, up 3.9% from 5,554.25 last week. The S&P is up 18.1% year-to-date. The Nasdaq closed the week at 17,877.79 up 1.4% from 17,631.72 last week. It is up 19.1% year-to-date.

U.S. Treasury bond yields dropped sharply this week – The 10-year treasury bond closed the week yielding 3.81%, down from 3.89% last week. The 30-year treasury bond yield ended the week at 4.10%, down from 4.15% 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 August 22nd, 2024, were as follows: The 30-year fixed mortgage rate was 6.46%, down from 6.49%, last week. The 15-year fixed was 5.62%, down from 5.66% 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.

July California existing-home sales report – Prices down slightly from June, but up 6.5% from one year ago – The California Association of Realtors reported that existing-home sales totaled 278,810 on an annualized rate in July, up 4.7% from a revised 268,840 homes sold on an annualized basis last July. There was a 2.9-month supply of homes for sale, up from a 2.5-month supply one year ago. The statewide median price paid for a home in July was $886,560, down 1.6% from $900,720 in June and, up 6.5% from $832,530 one year ago.

Have a great weekend!

The graph below shows the CPI rate from 2021 to now

Stock markets posted their best week since November 2023 – Strong retail sales data and lower first-time unemployment claims offset investors’ concerns about the economy. The Dow Jones Industrial Average closed the week at 40,659.79, up 2.9% from 39,497.54 last week. It is up 7.9% year-to-date. The S&P 500 closed the week at 5,554.25, up 3.9% from 5,344.15 last week. The S&P is up 16.5% year-to-date. The Nasdaq closed the week at 17,631.72, up 5.3% from 16,745.30 last week. It is up 17.5% year-to-date.

U.S. Treasury bond yields dropped sharply this week – The 10-year treasury bond closed the week yielding 3.89%, down from 3.94% last week. The 30-year treasury bond yield ended the week at 4.15%, down from 4.23% 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 August 15th, 2024, were as follows: The 30-year fixed mortgage rate was 6.49%, up from 6.47% last week. The 15-year fixed was 5.66%, up from 5.63% 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.

California home affordability – The California Association of Realtors released its second quarter affordability index this week. It showed that 14% of households could afford to purchase a $906,000 median-priced home, down from 17% in Q1 2024, and down from 16% in the 2nd quarter of 2023. Year-over-year the median price had jumped 9% from the second quarter of 2023. A household income of $236,800 was required to qualify for a monthly payment of $5,920, assuming a 20% down payment on a 30-year fixed at a 7.10% rate. They found that 22% of households were able to afford a $690,000 median price condo, down from 24% in Q1 and 25% one year ago. A household income of $180,000 was needed to qualify for a $4500 monthly payment. Fortunately, interest rates are significantly lower than they were in the second quarter and inventory levels have risen so affordable will be higher in the third quarter, but still near historic low levels.

Have a great weekend!