| Stock markets closed the week higher, and bond yields and mortgage rates dipped slightly. The S&P 500 and the Nasdaq closed the week at all-time highs, with the S&P closing at a record high every day this week. It’s up almost 28% from its April low. The Dow is just below its record high. Corporate profits have been strong, and President Trump announced a trade deal with Japan and hinted at being close to deals with China, Indonesia, the European Union, and others ahead of the August deadline. Investors feel that the deadline will be extended. President Trump also met with Fed Chairman Powell. They toured the Fed building, which is under construction and is $2.5 billion over budget. Afterward, they gave a press conference, which seemed more cordial. Some analysts felt that Powell’s recent statements may indicate his willingness for a rate reduction at next week’s Fed meeting.
Stock Markets – The Dow Jones Industrial Average closed the week at 44,901.92, up 1.3% from 44,342.19 last week. Year-to-date, it is up 0.8% from 44,544.66 on December 31, 2024. The S&P 500 closed the week at 6,388.64, up 1.5% from 6,296.44 last week. Year-to-date, the S&P is up 5.8% from 6,040.53 on December 31, 2024. The Nasdaq closed the week at 21,108.32, up 1% from 20,895.66 last week. Year-to-date, it is up 7.5% from 19,627.44 on December 31, 2024. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.40%, down from 4.44% last week. The 30-year treasury bond yield ended the week at 4.92%, down from 5.00% last week. We watch bond yields because mortgage rates follow bond yields. Mortgage rates – Every Thursday, Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of July 24, 2025, were as follows: The 30-year fixed mortgage rate was 6.74%, nearly unchanged from 6.75% last week. The 15-year fixed was 5.87%, down from 5.92% last week. The graph below shows the trajectory of mortgage rates over the past year. U.S. existing-home sales stalled in June 2025 – The National Association of Realtors reported that existing-home sales totaled 3.93 million units on a seasonal annualized rate in June, down 2.7% from an annualized rate of 3.93 million units in May. The median price paid for a home sold in the U.S. in June was $435,300, up 2%from $426,900 one year ago. There was a 4.7-month supply of homes for sale in June, up from a 4-month supply in June 2024. First-time buyers accounted for 30% of all sales. Investors and second-home purchases accounted for 16% of all sales. All cash purchases accounted for 29% of all sales. Foreclosures and short salesaccounted for 3% of all sales. Have a Great Weekend! |
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