Stock markets ended the week higher – Inflation fears subsided this week after experts pointed out that a slowdown in manufacturing due to COVID-19 shutdowns led to a shortage of goods, Those shortages caused prices to rise in many sectors throughout the economy. Many items are no longer available after one year of a limited or stop in manufacturing. Now that employees have returned to work it is expected that manufacturing will increase to cover the demand, which should bring prices back down. The Dow Jones Industrial Average closed the week at 34,529.45, up, 1% from 34,207.84 last week. It is up 12.8% year-to-date. The S&P 500 closed the week at 4,204.11, up 1.1% from 4,155.86 last week. It is up 11.8% year-to-date. The NASDAQ closed the week at 13,748.24, up 2.0% from 13,470.99 last week. It is up 6.6-% year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.58%, down from 1.63% last week. The 30-year treasury bond yield ended the week at 2.26%, down from 2.33% last week. We watch bond yields because mortgage rates often follow treasury bond yields.
Mortgage rates – The May 27th, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.95%, down from 3.00% last week. The 15-year fixed was 2.27%, down slightly from 2.29% last week. The 5-year ARM was 2.59%, unchanged from 2.59% last week.
Southern California home prices increase 20% year over year – Real estate data company DQNews (formerly CoreLogic/DataQuick) reported that April home sales in their six-county Southern California Jumped 86.2% from the number of sales last April while we were in the deepest part of the pandemic. There were a total of 25,807 home sales compared to just 13,899 last April. The median price jumped 20.2%. That marked the highest percentage increase of the year-over-year median price since 2013 while home prices were recovering from their drops in the financial crisis. The county-by-county numbers were as follows: Los Angeles County recorded a 19% increase in the median price. Orange County recorded a 15.6% increase in the median price. San Bernardino County recorded a 23.7% increase in the median price. Riverside County recorded a 19.7% increase in the median price. Ventura County recorded an 18.5% increase in the median price. San Diego County recorded a 17.8% increase in the median price.
- Rodeo Realty, Inc.