Stocks finish higher in a robust June - Stocks dropped slightly this week, their only weekly loss in the month of June. This week a drop in consumer confidence caused stocks to drop slightly, but drove interest rates down. Investors are also watching the start of the G20 Summit in Japan hoping for the U.S. and China to resume trade talks and reduce tariffs. The Dow Jones Industrial Average closed the week at 26,599.96, down 0.4% from 26,719.13 last week. It’s up 14.0%  year to date. The S&P 500 closed the week at 2,94mj1.76, down 0.3% from 2,950.46 last week.  It is up 17.3% year to date. The NASDAQ closed the week at 8,006.24, down 0.3% from 8,031.71 last week. The NASDAQ is up 20.7% year to date. 


Treasury Bond Yields at lowest rate since 2017  - The 10-year treasury bond closed the week yielding 2.00%, down from 2.07% last week. The 30-year treasury bond yield ended the week at 2.52%, down from 2.59%  last week. We watch treasury bond yields because mortgage rates follow bond yield yields. 
 

Mortgage rates continue to drop  - The  June 27, 2019 Freddie Mac Primary Mortgage Survey 30-year fixed mortgage rate average was 3.73%, down from 3.84%  last week.  The 15-year fixed was 3.16%, down from 3.25% last week. The 5-year ARM was 3.39%, down from 3.48% last week. 


Lower mortgage interest rates lifted Nationwide home sales in May - The National Association of Realtors reported that the number of homes sold jumped 2.5% month over month in May from April’s resale home numbers. Year over year sales were down 1.1%. The median price paid for a home in the U.S. was up 4.8% from last May, the  87th straight month of year over year increases in the median price. The unsold inventory index stood at a 4.3 month supply of homes for sale. That was just slightly higher than a 4.2 month supply last May. Pending sales also increased 1.1% in May from the number of homes that went under contract in April. 
Author, 
Syd Leibovitch

Stock markets close week at or near record highs - The DOW and S&P hit new highs this week -Stocks finished higher for the third straight week. Investors were optimistic on hopes of lower interest rates as the Federal Reserve signaled that a rate cut this year was being considered. Other central banks overseas have also either dropped rates, or signaled that they were considering easing, forcing global bond yields down. The Dow Jones Industrial Average closed the week at 26,719.13,  up 2.4% from 26,089.61 last week. It’s up 14.5% year to date. The S&P 500 closed the week at 2,950.46, up  2.2%  from 2,881.98 last week.  It is up 17.1% year to date. The NASDAQ closed the week at 8,031.71, up 3% from 7,796.66 last week. The NASDAQ is up 21% year to date.  
Treasury Bond Yields hold at 24 month low  - The 10-year treasury bond closed the week yielding 2.07%, almost unchanged from 2.09% last week. The 30-year treasury bond yield ended the week at 2.59%,  unchanged from 2.59%  last week. We watch treasury bond yields because mortgage rates follow bond yield yields. 

Mortgage rates remain at lowest levels in 2 years - The  June 13, 2019 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.84%, almost unchanged from 3.82%  last week. The 15-year fixed was 3.25%, almost unchanged from 3.26% last week. The 5-year ARM was 3.48%, down slightly from 3.51% last week. 

Lower mortgage rates spur more California home sales and higher home prices in May - The California Association of Realtors reported that the number of  existing home sales in May totaled 406,960 on a seasonally adjusted annualized basis in May.  It was the first time sales were above the 400,000 benchmark in almost a year. The statewide median price increased to $611,190, up 1.7% from last May, and a new record high. The unsold inventory index showed a 3.2 month supply of homes for sale, up from a 3 month supply one year ago. 

U.S. existing home sales rebound in May - The National Association of Realtors reported that the number of existing homes sold increased 2.5% month over month  in May.  The nation-wide median price increased 4.8% year over year from last May. That marked the 87th straight month of year over increases in the median price. Inventory levels showed a 4.3 month supply of homes for sale, up slightly from a 4.2 month supply one year ago. 


Author, 

Syd Leibovitch

Stocks up for the week - High profile mergers and a strong May retail sales report lifted stocks this week. The Dow Jones Industrial Average closed the week at 26,089.61,  up 0.4% from 25,983.94 last week. It’s up 11.8% year to date. The S&P 500 closed the week at 2,886.98, up  0.5%  from 2,873.34 last week.  It is up 15.2% year to date. The NASDAQ closed the week at 7,796.66, up 0.7% from 7,742.10 last week. The NASDAQ is up 17.5%  year to date. 

Treasury Bond Yields hold at 24 month low  - The 10-year treasury bond closed the week yielding 2.09%, unchanged from 2.09% last week. The 30-year treasury bond yield ended the week at 2.59%, almost unchanged from 2.57%  last week. We watch treasury bond yields because mortgage rates follow bond yield yields. 

Mortgage rates remain at lowest levels in 2 years - The  June 13, 2019 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.82%, unchanged from 3.82%  last week. The 15-year fixed was 3.26%, almost unchanged from 3.28% last week. The 5-year ARM was 3.51%, also almost unchanged from 3.52% last week. 

Housing sales and price data for May will be released next week. We are expecting both prices and sales numbers figures to be higher. 

Author, 

​Syd Leibovitch

Fewer new jobs were created in May - Unemployment remains at 50 year low - The Bureau of Labor Statistics reported that 75,000 new jobs were created in May. That was well below analysts’ expectations of 175,000 new jobs. The unemployment rate held steady at 3.6%, a 50 year low. Average hourly wages were up 3.1% from one year ago. ​

Stocks open June with best weekly gain in six months - This week negative news had positive results. Stocks had their worst May since 2010 after a trade deal with China collapsed, and President Trump announced last Friday that he would place tariffs on Mexico beginning June 10. Stocks dropped because investors felt that trade wars would slow the economy. This week news spread that investors felt that the Federal Reserve was considering dropping rates in order to offset any slowing caused by tariffs, and stocks rallied.  On Friday a disappointing jobs report was actually followed by a jump in stock prices, as it is believed that a slowdown in job creation puts even more pressure on the Fed to drop rates. On a positive note, President Trump announced Friday that he was suspending indefinitely the tariffs on Mexico that he announced just  last Friday. They were to begin Monday. The Dow Jones Industrial Average closed the week at 25,983.94, up 4.7% from 24,815.04 last week. It’s up 11.4% year to date. The S&P 500 closed the week at 2,873.34, up  4.4% from 2,752.06 last week.  It is up 14.6% year to date. The NASDAQ closed the week at 7,742.10, up 3.9% from 7,453.15 last week. The NASDAQ is up 16.7%  year to date. 

Treasury Bond Yields at lowest levels in 24 months - The 10-year treasury bond closed the week yielding 2.09%, down from 2.14% last week. The 30-year treasury bond yield ended the week at 2.57%, unchanged from 2.58%  last week. We watch treasury bond yields because mortgage rates follow bond yield yields. 

Mortgage rates dropped to lowest levels in almost 2 years - The  June 6, 2019 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.82%, down  from 3.99% last week. The 15-year fixed was 3.28%, down  from 3.46% last week. The 5-year ARM was 3.52%, down from 3.60% last week. 

Author, 

Syd Leibovitch