Mortgage Rates – The Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average for the week was 3.87% almost unchanged from last week’s 3.83%. The 30 year fixed survey average was 4.53% on January 2, 2014! This represents a drop of almost 3/4%! The 15 year fixed was 3.15%, slightly up from last week’s 3.10%. It was 3.55% last January 2! That’s a drop of almost 1/2%. The 5 year ARM was 3.01%, it was 3.05 last January 2. The 1 year ARM was 2.40%, and 2.56% last January 2. Rates dropped later in the week so next week’s survey should show slightly lower 30 and 15 year rates.
Gas prices end year down over $1.00 per gallon. – Oil closed at $52.81per barrel on January 2 2015 down from$95.76 January 2, 2014. Many parts of the country have gas prices under $2.00 per gallon. We are about $2.60 per gallon, due mostly to higher taxes, and also more expensive cleaner burning blends.
Low inflation causes other commodities to drop – The last consumer price index reading showed inflation in check at an annual increase of 1.2%. That has caused commodities which are used as a hedge against inflation to drop. For example gold closed Friday at $1189 an ounce down from January 2, 2014 when it was $1226, down about 4%. Silver closed Friday at $15.78 an ounce, also down sharply from $20.02 on January 2, 2014. A drop of over 20% for the year!
I will be doing a more complete year end report when final numbers are in for December. Employment reports for the U.S. will be out at the end of next week. The California jobs report will be available around the middle of the month. DataQuick will report home price and sale statistics in the second week of January, and the California Association of Realtors will release their market data the third week. Retail sales will be out in about 10 days. Inflation data will be out by the third week of January, as well consumer confidence readings. We will get a good year over year comparison when we have all the data.
I wish you a Happy, Healthy and Prosperous 2015!
If you’d like more information on the San Fernando Valley or Los Angeles, or to have help looking for your next home, please feel free to reach out! I’m happy to help, no obligation.