| Economic news this week – There were no major reports or other economic news this week, and stocks trended lower until Friday, when Fed Chair Jerome Powell spoke at the Jackson Hole Economic Policy Symposium in Wyoming. He noted that a weakening labor market “may warrant” interest rate cuts, sparking a strong rally. On Friday after Powell’s speech, the S&P 500 rose 1.5%, the Nasdaq gained 1.9%, and the Dow Jones surged 846 points (1.9%) to close at a record 45,631.74, its first all-time high since December 2024. While the S&P and Nasdaq finished slightly below their record close last Friday, they were both well above where they opened Friday morning when they were on track for their worst week since May.
Stock Markets – The Dow Jones Industrial Average closed the week at 45,631.74, up 1.5% from 44,946.12 last week. Year-to-date, it is up 2.4% from 44,544.66 on December 31, 2024. The S&P 500 closed the week at 6,446.97, almost unchanged from 6,449.80 last week. Year-to-date, the S&P is up 6.7% from 6,040.53 on December 31, 2024. The Nasdaq closed the week at 21,496.54, down 0.6% from 21,622.98 last week. Year-to-date, it is up 9.5% from 19,627.44 on December 31, 2024. U.S. Treasury bond yields – Bond yields dropped after Powell’s speech on Friday – The 10-year treasury bond closed the week yielding 4.26%, down from 4.33% last week. The 30-year treasury bond yield ended the week at 4.88%, down from 4.92% 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 August 21, 2025, were as follows: The 30-year fixed mortgage rate was 6.58%, unchanged from 6.58% last week. The 15-year fixed was 5.69%, down from 5.71% last week. The graph below shows the trajectory of mortgage rates over the past year.
This week the California Association of Realtors and the National Association of Realtors released their July 2025 home sales report. You can run a report on your city or zip code with the same data at RodeoRe.com U.S. existing-home sales increased 2% in July after slowing in June – The National Association of Realtors reported that existing-home sales totaled 4.01 million units on a seasonally adjusted annualized rate in July, up from an annualized 3.93 million units in June. Year-over-year sales were up 0.8% from last July. The median price paid for a home sold in the U.S. in July was $422,400, down from $435,300 in June, and up 0.2% from $421,400 one year ago. There was a 4.6-month supply of homes for sale in June, up from a 4-month supply last July. First-time buyers accounted for 28% of all sales. Investors and second-home purchases accounted for 20% of all sales. All cash purchases accounted for 31% of all sales. Foreclosures and short sales accounted for 2% of all sales California existing-home sales – The California Association of Realtors reported that existing-home sales totaled 261,810 on an annualized basis in July, down 1% from 264,000 in June. Year-over-year sales were down 4.1% from a revised 272,990 annualized home sales last July. The statewide median price paid for a home was $884,050 in June, down 1.7% from $889,790 in June and down 0.3% from $886,420 in July 2024. There was a 3.7-month supply of homes for sale in July, up from a 2.9-month supply of homes for sale one year ago. The graph below shows sales data by county for Southern California.
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