Bond yields remain at 3-year low – The 10 year U.S. Treasury bond yield closed the week at 1.52%, down from 1.62% last Friday. The 30-year U.S. Treasury bond closed at 2.42%, down slightly from 2.44% last week. Mortgage rates follow bond rates so we watch bond rates carefully.Mortgage rates at 3-year low – The Freddie Mac Primary Mortgage Survey released on June 23, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.56%. The 15-year fixed average rate was 2.83%. The 5/1 ARM average rate was 2.74%. Rates dropped with stocks on Friday so rates are currently a little lower. Pending home sales rise in California – The California Association of Realtors reported on Thursday that statewide pending existing home sales rose 3.8% in May from May 2015. This was welcome news as year over year closed home sales dropped dropped in May on a year over year basis. They also reported that pending home sales in Southern California rose 5.6% on a year over year basis compared to May 2015.
U.S existing home sales hit their highest pace in over a decade – The National Association of Realtors reported that total existing home sales, which include single family homes, condos, town-homes, and co-ops, were up 4.5% in May from May 2015. The total number of sales on a annualized adjusted rate was 5.53 million homes in May 2016. May was the highest annual pace since February 2007when sales hit 5.79 million.
Have a great weekend,
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