11/21/2016
Weekly Economic Update
*Stocks up again - Markets increased marginally this week, adding to the record breaking gains and levels reached last week.
*Inflation is on the Rise - U.S. Consumer prices recorded their largest increase in six months in October suggesting a pickup in inflation. In the last 12 months ending October, the CPI has increased 1.6%, its biggest increase since October 2014.
*U.S. Treasury Bond yields jump - The 10 year U.S. Treasury Bond yield closed the week at 2.34%, up from 2.15% last Friday. The 30-year U.S. Treasury Bond closed at 3.01%, up from 2.94% last week. Mortgage rates follow bond yields so we watch bond yields closely.
*Mortgage rates continued to rise last week - The Freddie Mac Primary Mortgage Survey which was released on November 17, 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 3.94%. The 15-year fixed average rate was 3.14%. The 5/1 ARM average rate was 3.07%. Rates increased further throughout the week so next week's rates will be higher. Currently, the 30-year fixed rate is around 4.25%.
*Home sales and prices increase in October - The California Association of Realtors released its October home sales report. The number of existing homes sold in October totaled 442,970 on a seasonally adjusted annualized rate. That represented an increase of 4.1% from September and a year over year increase of 8% from last October's figures. The statewide median price was $513,520, up 1.2% from September and up 7.3% from last October when the median price was $478,780. Inventory continues to be near record lows
