| Wednesday, August 30, 2017 | ||||||||
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 8/23/17 | .98 | 1.00 | 1.11 | 1.22 | 1.32 | 1.45 | 1.76 | 1.99 | 2.17 | 2.51 | 2.75 |
| 8/24/17 | .98 | 1.02 | 1.11 | 1.23 | 1.33 | 1.47 | 1.78 | 2.01 | 2.19 | 2.53 | 2.77 |
| 8/25/17 | .99 | 1.03 | 1.11 | 1.23 | 1.35 | 1.47 | 1.77 | 2.00 | 2.17 | 2.51 | 2.75 |
| 8/28/17 | .99 | .98 | 1.12 | 1.24 | 1.33 | 1.46 | 1.74 | 1.99 | 2.16 | 2.51 | 2.76 |
| 8/29/17 | .96 | 1.03 | 1.13 | 1.23 | 1.33 | 1.43 | 1.70 | 1.96 | 2.13 | 2.48 | 2.74 |
Source: U.S. Department of the Treasury, as of 8/29/17
U.S Housing Market Continues to Rise
Yesterday the S&P CoreLogic Case-Shiller National Home Price data was released for June 30th. The reports are released monthly and are widely followed by economists and housing industry analysts. The National Home Price Index for June (YoY) was up 5.77%. Seattle showed the biggest increase of 13.4% followed by Portland, Oregon, at 8.2%. Seattle also had the biggest month-over-month increase at 0.8%, followed by 0.6% increases in San Diego and Las Vegas. Home prices fell from a month earlier in Atlanta, Chicago, Cleveland and New York. Prices in all 20 major cities increased from a year earlier.
The continuing trend of shrinking inventory for previously-owned homes (the level is the lowest since 1999) is keeping prices up at a time that housing demand is being sustained by lower unemployment and very low mortgage rates. Growth in property values since 2012 has consistently outpaced wage gains. National home prices bottomed out in early 2009, showing a decline of 13% YoY. The recovery peaked with 11% YoY gains in late 2013. Steady gains have continued at 5-6% YoY for the past three years.
The bad news for the housing market is that rising prices are holding back potential new buyers. Despite a strong job market and low mortgage rates, prices are causing affordability problems for younger buyers. New home prices are obviously going to cost more than comparable existing homes, which doesn’t help first time buyers.
It appears that banks are much more cautious, this time around, regarding home-equity lines of credit and cash-out mortgage refinancing. Generally those activities are increasing, but there is no housing bubble in the U.S., yet.
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