Stocks have best week in three months – Stock markets rose this week with the NASDAQ hitting an all time high. Big winners this week included financial stocks, which rallied after the new Acting Director of The Consumer Financial Protection Bureau, Mick Mulvaney, told the 25 members of the Consumer Advisory Board that they will be replaced. It is widely believed that the new appointees will be much more friendly to financial institutions than the Obama era appointees. Just one week ago, Congress rolled back some of the regulations put in place after the financial crisis. Energy stocks continued to rise as oil prices topped $65 a barrel, up from $50 a barrel at the beginning of the year. Investors are also showing more optimism following last week’s robust jobs report, benefits of the corporate tax cuts, and strengthened economic conditions overseas. The Dow Jones Industrial Average closed the week at 25,316.53, up from its May 31, 2018 close of 24,415.84. It is up 2.4% year-to-date. The S&P 500 closed the week at 2,779.03, up from its May 31, 2018 close of 2,705.27. It’s up 3.9% year-to-date. The NASDAQ closed the week at 7,645.51, up from its May 31 close of 7,442.12. It’s up 10.8% year-to-date.
Treasury Bond Yields higher this week – The 10-year treasury bond closed the week yielding 2.93%, up from 2.83% on May 31. The 30-year treasury bond yield ended the week at 3.08%, up from 3.00% on the last week. We watch bond rates because mortgage rates follow bond rates.
Mortgage Rates lower for second straight week – The June 7, 2018 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.54%, down slightly from 4.56% last week. The 15-year fixed was 4.01%, down from 4.06% last week. The 5-year ARM was 3.74%, down from 3.80% last week.