Rodeo Realty

Stock markets hit record highs this week – Stocks rose this week on rising oil prices, better results from retailers, and an upgraded revision in the first quarter GDP. Oil prices which dropped in 2015 and 2016 put pressure on energy stocks in the last couple years. This year they were rising before falling in April. That drop caused OPEC to cut oil production which lifted oil prices. This week OPEC announced that the production drop will last until March 2018 which lifted oil further and caused energy stocks to rise. Several retailers reported first quarter profits that beat estimates this week. Among those were Costco, Best Buy and Tiffany’s. Target and Home Depot also raised outlooks. Earlier in the month Macey’s, JC Penny and others reported disappointing profits which made experts think consumers were slowing down on spending. These new results calmed investors who were worried about retailers. The first quarter GDP was also revised upward from 0.7% to 1.2%. It was a strong week all around. The Dow Jones Industrial Average ended the week at 21,080.28, up from 20,804.84 last week. The S&P 500 closed the week at 2,414.82, up from its close last week of 2,381.73. The NASDAQ closed the week at 6,210.19, up from last week’s close of 6,083.79. 

Treasury Bond yields stable this week – The 10-year Treasury bond closed the week at 2.25%, up slightly from 2.23% last week. The 30-year treasury yield ended the week at 2.92% also up slightly from 2.90% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully. 

Mortgage Rates down this week – The May 25, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 3.95%, down from 4.02% last week. The 15 year fixed was 3.19%, down from last week’s 3.27%. The 5-year ARM was 3.07%, down from 3.13% last week. 

U.S. Existing homes sales pace declines in April – The National Association of Realtors reported that the number of homes sold in April declined 2.3% from March’s sales pace. Sales nationwide were still 1.6% above the number if sales last April. Simply put the number of new listings are not keeping up with the pace of sales. Low inventory also causes prices to rise. The median price of a home rose 6% nationally from last April. April marked the 62nd straight month of year over year price gains. 

California pending home sales fewer in April – The California Association of Realtors reported that an extremely low supply of homes for sale has caused the number of new contracts signed on existing homes in California to fall for the fourth straight month. The number of new contracts signed decreased 7.4% from the number of pending sales last April. Southern California fared much better that the state as a whole. Southern California pending sales were down 2.8% from last April. Los Angeles pending sales were down 4.7% from April 2016. 

Have a great holiday weekend!
Syd

Stocks end the week just slightly down despite volatility – Stocks rose early in the week as oil prices rebounded after OPEC and non OPEC members announced plans to slow production. More disappointing earnings particularly from retailers were released. Political uncertainty was blamed on a steep drop on Thursday, but markets made up most of those losses on Friday. The Dow Jones Industrial Average ended the week at 20,804.84, down from 20,896.71 last week. The S&P 500 closed the week at 2,381.73, down slightly from its close last week of 2,390.90. The NASDAQ closed the week at 6,083.79, down from last week’s close of 6,121.23. 

Treasury Bond yields drop this week – The 10-year Treasury bond closed the week at 2.23%, down from 2.33% last week. The 30-year treasury yield ended the week at 2.90%, down from 2.98% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully. 

Mortgage Rates down this week – The May 18, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.02%, down from 4.05% last week. The 15-year fixed was 3.27%, down from last week’s 3.29% The 5-year ARM was 3.13%, down slightly from 3.14% last week. Rates dropped late in the week, so next week’s rates should be a little lower. 

The number of existing homes sold in California decline in April – Prices continue to rise – The California Association of Realtors reported that existing home sales statewide declined 2.4% in April from March to a seasonally adjusted rate of 406,300 in April. That was 1.7% below the sales rate last April. The Southern California region had the largest decline. The number of sales were down 6.5% from April 2016. The decline in sales was attributed to a historically low number of homes for sale. Statewide there was a 3.5-month supply of homes for sale in April. That was the lowest April reading since C.A.R. has been tracking their Unsold Inventory Index. New listings taken statewide have declined for 22 straight months, falling 10.5% from last April. Prices continue to move up. The statewide median price was $536,750. It increased 3.7% from March’s median price of $517,490. Year over year the median price increased 5.4% from $509,240 in April 2016. 

Have a great weekend,
Syd

Stocks mixed this week – It was a very stable week for stocks. Market volatility reached a 24-year low. Investors were encouraged by higher quarterly corporate earnings announcements from many companies, and a rebound in CPI, which surprisingly dropped in March. Also, optimism of pro growth tax reform, and defense and infrastructure spending kept investors optimistic. Markets shrugged off some disappointing news this week like: Falling oil prices, which has caused energy stocks to drop. Oil prices are down 10.8% year-to-date. Some retail companies continue to struggle due to pressure from online retailers. Year-to-date, 9 large retailers have declared bankruptcy, the same amount as all of last year. The dollar strengthened further against most currencies, which could hurt exports in the future. The Dow Jones Industrial Average ended the week at 20,896.71, down from 21,006.94 last week. The S&P 500 closed the week at 2,390.90, down slightly from its close last week of 2,399.29. The NASDAQ closed the week at 6,121.23, up from last week’s close of 6,100.76.

Consumer prices rebound in April – The Labor Department reported that consumer prices rose 0.2% in April. This followed a surprising decline of 0.3% in March, which scared investors. Year over year consumer prices were up 2.2% in April. That is in line with the Fed’s inflation target.

Treasury Bond yields – The 10-year Treasury bond closed the week at 2.33%, down from 2.36% last week. The 30-year treasury yield ended the week at 2.98%, unchanged from 2.99% last week.
Mortgage Rates – The May 11, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.05%, almost unchanged from 4.02% last week. The 15-year fixed was 3.29%, almost unchanged from last week’s 3.27%. The 5-year ARM was 3.14%, also almost unchanged from 3.13% last week.

Foreclosures at lowest level since 2005 – Foreclosure filings dropped 23% from one year ago. The number of homes in default have hit their lowest level since November 2005.

Have a great weekend,
Syd

Hiring rebounds in April with 211,000 new jobs – The Labor Department reported that U.S. employer’s added 211,000 new jobs in April. This followed a disappointing March in which only 98,000 new jobs were added. The unemployment rate dropped to 4.4%, a 10-year low. Wages rose just 2.5% year over year from last April’s level. 

Stocks up for week – Stock markets rose this week as tech companies reported first quarter earnings that beat expectations. The tech heavy NASDAQ is up 13% for the year. The DOW and S&P are also up 6.3% and 7.2% respectively year to date. They barely moved this week as they were held back by energy companies that dropped on falling oil prices, disappointing results from big retailers, and auto stocks that dropped following fewer auto sales in April. The April jobs report caused stocks to rally Friday and end the week higher. The Dow Jones Industrial Average ended the week at 21,006.94, up from 20,940.51 last week. The S&P 500 closed the week at 2,399.29, up from its close last week of 2,384.20. The NASDAQ closed the week at 6,100.76, up from last week’s close of 6,047.71. 

Treasury Bond yields end month lower – The 10-year Treasury bond closed the week at 2.36%, up from 2.29%, last week. The 30-year treasury yield ended the week at 2.99%, up from 2.96% last week. 

Mortgage Rates lower in April – Mortgage rates dropped to a 5 month low in April. The May 3, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.02%, almost unchanged from 4.03% on April 27, 2017. The 15 year fixed was 3.27%, unchanged from last week’s close. The 5-year ARM was 3.13%, also almost unchanged from 3.12% last week. 

Have a great weekend.