Economic update for the week ending February 9, 2019
Stock markets ended the week almost unchanged after 5 weeks of solid gains - Stocks were mostly flat this week as renewed trade worries overshadowed a solid earnings reporting season. So far nearly two thirds of companies have reported earnings. Nearly three quarters of them beat expectations. The US and China agreed in December to hold off on any new tariffs until March 1, as it appeared that both countries’ economies were beginning to suffer. With that date approaching and no deal in place investors are getting anxious. The Dow Jones Industrial Average closed the week at 25,106.33, up 0.2% from 25,063.89 last week. It’s up 7.6% year to date. The S&P 500 closed the week at 2,707.88, almost unchanged from 2,708.53 last week. It is up 8% year to date. The NASDAQ closed the week at 7,298.20, up 0.5% from 7,263.87 last week. The NASDAQ is up 10% year to date.
Treasury Bond Yields lower this week - The 10-year treasury bond closed the week yielding 2.63%, down from 2.70% last week. The 30-year treasury bond yield ended the week at 2.97% down from 3.03% last week. We watch treasury bond yields because mortgage rates follow bond yields.
Mortgage rates lower this week - Rates at the lowest levels since March 2018 - The February 7, 2019 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.41%, down from 4.46% last week. The 15-year fixed was 3.84%, down from 3.89% last week. The 5-year ARM was 3.91%, down from 3.96% last week.
We should be getting January real estate sales data at the end of next week. If that data is available it will be included in next weeks update. If not it will be the following week. The California Association of Real Estate usually has numbers tabulated and released by the third week of the month for the previous month.
Have a great weekend!