| Fed’s preferred inflation index shows inflation under control in July – The personal Consumption Expenditure Index (PCE), the Fed’s favorite gauge of inflation showed that inflation grew at a 2.6% annual rate in July, unchanged from June. Core PCE grew at a 2.9% annual rate, up from 2.8% in June.
Stock Markets – The Dow Jones Industrial Average closed the week at 45,544.88, down 0.2% from 45,631.74 last week. Year-to-date, it is up 2.2% from 44,544.66 on December 31, 2024. The S&P 500 closed the week at 6,460.26, up 0.2% from 6,446.97 last week. Year-to-date, the S&P is up 6.95% from 6,040.53 on December 31, 2024. The Nasdaq closed the week at 21,455.55, down 0.2% from 21,496.54 last week. Year-to-date, it is up 9.31% from 19,627.44 on December 31, 2024. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.23%, slightly up from 4.26% last week. The 30-year treasury bond yield ended the week at 4.92%, up from 4.88% 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 28, 2025, were as follows: The 30-year fixed mortgage rate was 6.56%, nearly unchanged from 6.58% last week. The 15-year fixed was 5.69%, unchanged from 5.69% last week. The graph below shows the trajectory of mortgage rates over the past year.
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