5 percent home loans
Prime Rate expected to reach 5.25 percent
On the eve of an important Fed meeting, bank giant Wells Fargo has set their mortgage rates on conforming loans at the 5% level for refinance purposes Their APR rate as of this morning is 5.07%.
Average rates a year earlier were around 3.85%
The Federal Open Market Committee began a two-day meeting on Tuesday, and the central bank will announce any policy change this afternoon. Fed Chairman Jerome Powell has said it was “all but certain” that the Fed would raise short-term interest rates by 25 basis points to a 2% to 2.25% – the highest level in 10 years.
As a result the prime rate at US banks will likely go up to 5.25%.
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California existing home sales down again
The California Association of Realtors reported that existing, single-family home sales totaled 399,600 in August on a seasonally adjusted annualized rate, down 1.8 percent from July and down 6.6 percent from August 2017.
– August’s statewide median home price was $596,410, up 0.8 percent from July and up 5.5 percent from August 2017.
– Statewide active listings rose for the fifth consecutive month, increasing 17.2 percent from the previous year.
California’s housing market dropped below the 400,000-level sales benchmark for the first time in more than two years as high home prices and eroding affordability combined to cut into housing demand.
August’s sales figure was down 1.8 percent from the revised 406,920 level in July and down 6.6 percent compared with home sales in August 2017 of 427,630.
California Electric Vehicle Sales Continue to Increase, But Significant Disparity Among Regions
SACRAMENTO, CA – The California green vehicle market continues to experience growth throughout the state, especially with increasing electric vehicle sales which now make up 3.1 percent of total new vehicle sales year to date, an increase from 2.4 percent this time last year. However, according to the California Green Vehicle Report, the overall California vehicle market is still overwhelmingly dominated by gasoline powered vehicles, making up 83 percent of new vehicles sold so far in 2018.
While the San Francisco Bay Area is experiencing the most growth in electric vehicle sales, at 7.7 percent year to date, other regions of the state are lagging. LA and Orange Counties, along with San Diego County, are seeing nearly 50 percent less electric vehicle sales than the North, at 3.3 percent and 3.9 percent year to date. The difference is even more significant in the Central Valley, where only 1.8 percent of new vehicles sold are electric.
“The disparity of electric vehicle sales in various regions of the state is significant, especially in the Central Valley. While California residents in Northern California seem to be adopting the idea of electric vehicles more rapidly, we have a long way to go in other regions of the state. It’s clear that consumers still prefer gasoline powered vehicles, while convenience, affordability, range and choice continue to be factors for consumers when selecting a new vehicle to purchase.” said California New Car Dealers Association Chairperson, Taz Harvey of Dublin Mazda. “While many manufacturers are getting on board with developing new electric vehicle options, they must continue to take all of these factors into consideration for consumer adoption to continue to increase.”
Additionally, brand share in the alternative powertrain market is still heavily dominated by Toyota, making up nearly 27 percent of green vehicle sales year to date. Tesla comes in second, bumping Chevrolet to third, at 21.1 percent and 10.2 percent year to date. Rounding out the top five selling brands in California for hybrid, plug in hybrid, electric and fuel cell vehicles are Ford and BMW.
The California Green Vehicle Report provides comprehensive information on the state’s green vehicle market. The report includes a segment watch, including top 20 best-selling alternative powertrain vehicles; best sellers in market segments including hybrid, plug in hybrid, electric and fuel cell; market trends by powertrain type and brand shares in alternative powertrain market. The complete report can be accessed on CNCDA’s website at: www.cncda.org