Stocks slightly higher after turbulent week – Stocks markets exhibited huge swings this week. Thursday markets plunged over one percent as investors feared that thespike in new COVID Delta variant cases would slow the progress of the world returning to normalcy after the pandemic. A decision by Japan not to allow fans at the summer Olympics was also announced Thursday. Economic data released Thursday suggesting that shortages in supplies and labor could be slowing the international economy. Also on Thursday the U.S. new unemployment claims rose to 373,000 which was higher than expected. On Friday markets rose over one percent after early second quarter corporate earnings began to be released. Companies had record profits in the second quarter of 2021. By days end many companies and experts conceded that those earnings were compared to one year ago when sales were anemic due to the pandemic. Compared to the second quarter of 2019, 2021 figures were still strong but nowhere near the year-over-year gains when compared to profit levels at the worst time of the pandemic. The Dow Jones Industrial Average closed the week at 34,870.16, up 0.2% from 34,786.35 last week. It is up 13.7% year-to-date. The S&P 500 closed the week at 4,369.55, up 0.4% from 4,353.54 last week. It is up 16.2% year-to-date. The NASDAQ closed the week at 14,701.92, up 0.4%, from 14,639.33 last week. It is up 14.0% year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.37%, down from 1.44% last week. The 30-year treasury bond yield ended the week at 1.99%, down from 2.06% last week. We watch bond yields because mortgage rates often follow treasury bond yields.
Mortgage rates – The July 8, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.90%, down from 2.98% last week. The 15-year fixed was 2.20%, down from 2.26% last week. The 5-year ARM was 2.52%, unchanged from 2.53% last week.
Housing data is released by the California Association of Realtors and the National Association of Realtors around the third week of the month for the previous month. Local market data for June is available on my website now. Search market reports. Those results again show rising sales, listings, and double digit price increases. Check my website to view your city, or zip code. If the state and national numbers are anywhere like our area I’d expect to see another month of record results when June sales are released. That will be the end of next week or the first of the following week. Hopefully we will have some of those numbers released before next weeks report.