The Economic update for the week ending on 06/10/2017 is here. Bond yields are on the raise from 2.15% to 2.21% last week, but the mortgage rates a bit down. Decreasing from 3.94% to 3.89% were the 30-year fixed mortgage rates and the 15 year fixed one was down to 3.16% from 3.19% last week, while the adjustable-rate mortgage was left unchanged.
Stock markets have lackluster week – Stocks were mixed this week with all indexes at or near all time highs. Financial stocks rallied after The House voted to scale back on financial regulations and consumer protection in The Dodd Frank Financial Reform Bill. This now goes to the senate, but it was the first step in cutting back regulations on financial firms. Energy companies got a boost out of higher oil prices. Tech stocks which have shown almost a 15% gain since the November election lost some ground as investors feel they may be nearing their peak values. The dollar strengthened after The United Kingdom election left the Prime Minister in power, but badly tarnished as she lost her majority in Parliament. Political drama dominated the news here again this week, but aside from all time high TV ratings political uncertainty has not had any negative effects on markets. The Fed meets next week in interest rate policy. They may raise short term rates, but fixed 15 and 30 year rate loans are more tied to inflation, which is tame. Fixed rates are the lowest they have been all year and shouldn’t move much either way. The Dow Jones Industrial Average ended the week at 21,271.97, up from 21,206.29 last week. The S&P 500 closed the week at 2,431.77, just off its close last week of 2,439.07. The NASDAQ closed the week at 6,207.93, down from last week’s close of 6,305.80.
Bond yields rise this week – The 10-year Treasury bond closed the week at 2.21%, up from 2.15%, last week. The 30-year treasury yield ended the week at 2.86%, up from 2.80%, last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates down this week – The June 8, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 3.89%, down from 3.94% last week. The 15 year fixed was 3.16%, down from 3.19% last week. The 5-year ARM was unchanged at 3.11%.
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.