Stocks got hammered in the beginning of the week, but recovered and rallied to end week higher – One factor that moved the markets this week was oil. As oil fell to a 13 year low hitting $26.55 a barrel on Wednesday, stocks dropped sharply along with oil prices. Fortunately, oil recovered and ended the week around $31 a barrel which fueled a rally in the stock markets. Stocks ended higher for the week. Dow Jones Industrial Average closed Friday at 16,093.51, up from 15,988.08 last week. TheS&P 500 closed the week at 1,906.90, up from 1,880.30 last week. The NASDAQ closed Friday at 4,591.18, up from 4,488.82 last week.
Bond yields just slightly higher – Bond yields remained near the lowest levels which have been reached from time to time over the past few years. The 10 year U.S. Treasury bond yield closed Friday at 2.07%, slightly higher than 2.03% last week. The 30 year U.S. Treasury bond yield closed Friday at 2.83%, almost unchanged from 2.81% last week.
Mortgage rates fall fell Monday and Tuesday but rise to end the week unchanged from last week – As stocks fell sharply Monday and Tuesday money moved to more safe, yet low yielding investments like bonds and mortgages. By Tuesday the 30 year hit 3.625%. As the stock market recovered on Thursday and Friday money moved back to stocks and rates rose. The ended the week about the same as they were last Friday. The 30 year fixed rates below loan amounts of 419,000 are around 3.75%. 30 year rates for loans above 419,000 are just around 4%. The 15 year fixed was around 3.10%. The 5 year was around 3%.
U.S. consumer prices dipped in December – The Labor Department reported that The U.S. Consumer Price Index fell 0.1% in December. They also reported that for all of 2015 consumer prices rose just 0.7%. This was well below the Fed’s target of a 2% inflation rate.
Southern California home sales up in December – Core Logic reported that December closed sales were up 10%from last December in the six county Southern California region. The median price was up 7% year over year. These figures represent resale single family homes and condominiums which are taken from public records.
January has been very active. So far our sales are up significantly from last January. It seems like prices are rising from some of the sales I am seeing. It’s not unusual to see prices rise more in the beginning of the year and flatten out later. I see that happening now.
Have a great weekend!
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