The Dow Jones Industrial Average closed the week at 17,373.38, down from last week’s close of 17,689.96. The S&P 500 closed the week at 2,077.57, down from last Friday’s close of 2,103.84. The NASDAQ closed the week at 5,043.54, down from last week’s close of 5,128.28.30 year fixed mortgage rates below 4% for second week – The 30 year fixed rates ended the week around 3.875% for loans up to $417,000, and around 4.00% for loans over $417,000. The 15 year fixed rate loans are about 3.125% for loans up to $417,000, higher loan amounts have rates that are around 3.375%. The 5 Year-ARM rate is around 3.00% and 1 Year-ARM mortgages are around 2.50%.
Treasury Bond yields stable this week – The 10 year Treasury bond yield closed week at 2.18%, the same as it was last Friday. The 30 year treasury bond yield closed Friday at 2.83%, down from last week’s close of 2.91%. It is widely felt that with low inflation a Fed rate hike won’t heavily affect the longer term bond rates, especially with such a strong dollar.
U.S. Employers add 215,000 jobs in July – unemployment rate remains at 5.3% – The Labor Department reported that US employers added 215,000 net non-farm new jobs in July. Every sector showed modest job growth gains with the exception of the energy sector which lost 4,000 jobs in July. The energy sector has lost 75,000 jobs so far in 2015 due to falling oil prices. Average hourly wages were up 5 cents an hour to $25.99. This was good news after a 1 cent per hour drop in June. Weak wage growth has been a drag on the economy. Last week The Labor Department reported that wage growth in the second quarter of 2015 was the slowest pace of wage growth in a quarter since 1982. Fortunately, the third quarter appears to be starting off with a better pace.
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.