Market Update | Local Tips, Trends, Rants & Events | Chelsea Robinson | Encino and Sherman Oaks Real Estate Agent and Houses for Sale
Looks like the stocks are up again this week after having a period of drop and interestingly enough, the Federal Reserve stated they will begin normalizing the situation to help with the liquidity of the economy, improving the housing market as well.
California home sales continue to rise through the month of August, but will they follow the raise this month as well? Read below to find out more and stay tuned for the next week’s market reports:
Stocks hit record highs again this week – Stocks were slightly higher this week following large gains the previous week. The Federal Reserve announced that it would begin its balance sheet normalization program next month. They will slowly sell off bonds and mortgage securities they purchased during the recession to help the housing market, lower long term rates, and add liquidity to the economy. They also announced that they would keep the federal funds rate between 1% and 1.25% which was good news to investors. They said that while the labor market is strong inflation is below 2%, which is lower than the Fed target rate. The Dow Jones Industrial Average ended the week at 22,349.59 up from 22,268.34 last week. It’s up 13.1%  year to date. The S&P 500 closed the week at 2,50.22, up from its close last week of 2,500.23. The S&P is up 11.8% YTD. The NASDAQ closed the week  at 6,426.22, down slightly from its all time high at last week’s close of 6,448.37. It’s up 19.4% year to date.
Bond yields higher this week  – The 10-year Treasury bond closed the week at 2.26%, up from 2.20%  last week. The 30-year treasury yield ended the week at 2.80%, up from 2.77% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates  rise this week –  The September 21, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 3.83%, up from 3.78% last week.  The 15 year fixed was 3.13%, up  from 3.08% last week.  The 5-year ARM was 3.17%, up from 3.13% last week. Rates were a little higher at the end of the week so next week’s survey rates could be higher.
California home sales  and prices continue to rise in August – The California Association of Realtors released its August Sales and Price Report. Despite tight inventory existing, single family home sales totaled 427,630 in August on a seasonally adjusted annualized rate. That represented a 1.5% increase month over month from July and an a 1.3% increase from last August.  The Los Angeles region registered a 4.4% gain in the number of sales year over year.  The median price paid for a home in California was $565,330, up 2.9% from July and 7.2% from August 2016.  C.A.R.’s Unsold  Inventory Index fell to a 2.9 month supply of housing in August, down from 3.2 months in July, as there were too few new listings to keep up with strong sales growth.

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.

Find Your New Home!
Contact Me Today!