Stocks moved higher this week, with the S&P 500 and Nasdaq continuing their climb as investors reacted positively to stronger-than-expected economic data, solid corporate earnings, and ongoing optimism surrounding artificial intelligence and technology spending. The April jobs report came in above expectations, reinforcing confidence that the labor market and overall economy remain more resilient than many analysts anticipated. Investors also appeared encouraged that tensions involving Iran, while still closely watched due to potential impacts on oil prices and inflation, have not yet significantly disrupted global markets
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 May 7, 2026, were as follows: The 30-year fixed mortgage rate was 6.37%, up from 6.3% last week. The 15-year fixed was 5.72%, up from 5.64% last week.
The graph below shows the trajectory of mortgage rates over the past year.
The U.S. Bureau of Labor Statistics reported that 115,000 new jobs were created in April, far surpassing analysts’ expectations of 65,000 new jobs. The unemployment rate held at 4.3%, unchanged from March. Average hourly wages increased 3.6% from one year ago, a slight increase from 3.5% in March, which was the lowest year-over-year increase since 2021.
Stock markets – The Dow Jones Industrial Average closed the week at 49,609.16, up 0.8% from 49,499.27 last week. It is up 3.2% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,398.93, up 2.3% from 7,230.12 last week. The S&P is up 8.1% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 26,247.08, up 4.5% from 25,114.44 last week. It is up 12.9% year-to-date from 23,241.99 on December 31, 2025.
U.S. Treasury Bonds – The 10-year Treasury bond closed the week yielding 4.38%, almost unchanged from 4.39% last week. The 30-year treasury bond yield ended the week at 4.99%, almost unchanged from 4.97% last week. We watch bond yields because mortgage rates follow bond yields.
Have a great weekend!