Economic Update: Week Ending May 23, 2026
The week ending May 23, 2026 closed with a mix of optimism and uncertainty. The Dow Jones Industrial Average finished at a record high, closing at 50,579.70, while the S&P 500 rose for its eighth straight week, its longest winning streak since 2023. The Nasdaq also gained, supported by technology and AI-related momentum.
Bond yields remained a major concern. The 10-year Treasury hovered near 4.57%, while the 30-year Treasury recently touched levels not seen since 2007. Rising yields are directly affecting mortgage rates, buyer affordability, and seller expectations.
Mortgage rates moved higher this week, with the average 30-year fixed mortgage reaching 6.51%, the highest level in nearly nine months. This is putting renewed pressure on buyers, especially first-time buyers and those stretching to afford higher-priced homes.
Inflation remains sticky, largely because of higher oil and fuel costs tied to the ongoing war in Iran. Consumer prices were reported up 3.8% year-over-year, while gasoline prices have remained elevated, creating a ripple effect through household budgets, construction costs, transportation, and consumer confidence.
The job market is still stable but softer. April added 115,000 jobs, and unemployment held at 4.3%. Layoffs remain relatively low, but hiring has slowed, creating what economists are calling a “low-hire, low-fire” labor market.
Nationally, the housing market remains divided. Buyers are seeing more inventory and more room to negotiate in some areas, but higher rates continue to limit affordability. Existing-home sales rose only 0.2% in April, showing that the market is moving, but cautiously.
In California, the median home price reached a record $914,810 in April, while existing single-family home sales improved from March and were up year-over-year. In Los Angeles, prices remain mixed, with March data showing a median sale price near $1.025 million, down 5.5% year-over-year.
Locally, Westlake Village and the Conejo Valley continue to show resilience. Westlake Village remains a high-demand luxury market, with recent data showing a median sale price around $1.775 million, up 21.8% year-over-year, although homes are taking longer to sell. Conejo Valley listings are averaging around 36 days on market, with a median listing price near $1.02 million.
The war in Iran continues to be one of the biggest global factors affecting housing. Higher oil prices can push inflation higher, which can push bond yields and mortgage rates higher. That makes buyers more cautious and often forces sellers to be more strategic with pricing, presentation, and negotiation.
For buyers, this market requires preparation: strong financing, realistic expectations, and the ability to act quickly when the right home appears. For sellers, pricing correctly from the beginning is critical. Homes that are well-prepared, professionally marketed, and positioned properly are still selling, but overpriced homes are sitting longer.
In Westlake Village, Conejo Valley, and Los Angeles, the message is clear: this is not a frozen market—it is a selective market. Buyers are watching rates closely, sellers are watching activity carefully, and global events are playing a larger role in local real estate decisions than ever before.
