U.S. Treasury Bond yields dropped slightly despite Fed rate hike – The 10-year U.S. Treasury Bond closed the week yielding 2.50%, down from 2.58% last Friday. The 30-year Treasury Bond yield closed the week at 3.11% down from 3.16% last week. Mortgage rates follow bond yields, so we watch treasury bonds closely.
Mortgage rates higher again this week – The Freddie Mac Primary Mortgage Survey released on March 9, 2017 reported that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 4.30%, up from 4.21% last week. The 15-year fixed average rate was 3.42%, 3.50%, up from 3.42% last week. The 5/1 ARM average rate was 3.28%, up from 3.23% last week.
California home sales pace, and prices continue to rise – The number of existing homes sold in California increased 4.7% month over month from January. Year over year the number of homes sold were up 4.9% from February 2017. The median price paid for a home in California was 478,790. The median price represents the point at which 1/2 the homes sell for more, and 1/2 sell for less. Month over month the median actually dropped which we have often seen over the last year, as one month is not a large sample. Month over month the median dropped 2.2% from January. Year over year, which is a better indicator of price movement prices were up up 7.6 inFebruary from February 2016. Inventory increased to a 4 month supply as more homeowners began putting homes on the market. That was up from 3.7 months in January, but down from 4.7 months last February. Inventory levels are also better to compare year over year due to seasonal purposes.
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.