WEEKLY MARKET UPDATE October 21th, 2024

Interest rates remained unchanged this past week during a slower news week. Let's talk about what happened and look ahead to the week ahead. Oil and mortgage rates tend to ebb and flow together. When oil prices move lower, interest rates often move lower as well. That is what happened earlier this week. Last Tuesday, oil had its most significant one-day decline in quite some time in response to news that Israel was not going to attack Iranian oil facilities. Also, OPEC issued a forecast showing a decrease in global demand for oil. Both stories pressured oil prices to move lower, which helped modestly improve long-term rates.

The 10-year Note yield, which also ebbs and flows with mortgage rates, did improve from the worst levels this week. The Government Note touched a high of 4.10% a couple of times and declined to a low of 4% this week in response to the oil news we discussed. Now, 4.10% is serving as yield resistance, preventing rates from moving higher, and 4% is serving as yield support, preventing rates from going lower. Whichever way the 10-year Note breaks out of this tight range, mortgage rates will likely follow.

For those of you who asked me about Long Beach, California 90803, Here is the information:

Yes, property values in 90803, California, are holding up, with some reporting increases in home prices and a decrease in the number of days homes are on the market:?

Long Beach has remained a seller's market, meaning homes sell faster, and prices tend to be higher.?

Finally, Home loan rates stopped rising this past week, which feels like a victory after the recent spike. The next directional move will likely come from high-impact news like inflation, the labor market, or the forthcoming election.