The Dow Jones Industrial Average closed the week at 24,580.49, down from 25,090.48 last week. It is down 0.6% year to date. The S&P 500 closed the week at 2,764,88, down from 2,779.66. It’s up 3% year to date. The NASDAQ closed the week at 7,692.82, down form 7,746.38 last week. It’s up 11.4% year to date.Treasury Bond Yields down slightly this week – The 10 year treasury bond closed the week yielding 2.90%, down slightly from 2.93% last week. The 30-year treasury bond yield ended the week at 3.04% almost unchanged from 3.05% last week. We watch bond rates because mortgage rates follow bond rates.
Mortgage Rates lower this week – The June 21, 2018 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.57%, down from 4.62% last week. The 15 year fixed was 4.04%, down slightly from 4.07% last week. The 5-year ARM was 3.83%, unchanged from 3.83% last week.
California adds fewer jobs, but the unemployment rate remained at an all time low in May – The California Employment Development Department reported that California employers added 5,500 new jobs in May. This was down from a robust April where 25,600 jobs were added. While this suggests that job growth slowed in May, experts were quick to point out that the state has had many months where job growth has fluctuated similar to April and May, so nobody should assume that job growth is stalling. The unemployment rate held steady at 4.2%,the lowest reading since the state began its current system of its unemployment reading in the 1970’s.
Fewer California existing homes sold in May, as price increases accelerated – The California Association of Realtors reported that existing home sales totaled 409,270 in May on a seasonally adjusted annualized rate. That was down 1.8% from April, and down 4.6% from May 2017’s sales pace. The state-wide median price in May was $600,860, up 2.8% from April and 9.2% higher than last May. On a more local level, the median price increased 9.1% year over year in Los Angeles County, 5.4% in Orange County, and 5.3% in Ventura County. The unsold inventory index in May stood at a 3 month supply of housing for sale, up from 2.9 months in May 2017.