Economic Update | Week Ending August 29, 2026

The economy continues to send mixed signals. This week, the Federal Reserve’s preferred measure of inflation, the PCE Price Index, showed inflation running at 3.7% year over year in July, up slightly from 3.6% in June, while core PCE, which excludes food and energy, remained at 3.3%. The report shows that inflation remains stubbornly above the Fed’s 2% target, making the path for interest rates less certain and reducing hopes for lower rates in the near term.

The real estate market remains very active. Single-family home prices have remained remarkably stable, with well-priced homes continuing to attract buyers. The condominium market, however, remains more challenging, with softer demand and downward pressure on prices in many areas.

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 27, 2026, were as follows: The 30-year fixed mortgage rate was 6.66%, nearly unchanged from 6.65% last week. The 15-year fixed was 5.98%, up slightly from 5.95% last week.

U.S. Treasury Bonds- The 10-year Treasury bond closed the week yielding 4.73%, almost unchanged from 4.74% last week. The 30-year Treasury bond yield ended the week at 5.22%, down from 5.27% last week. We watch bond yields because mortgage rates follow bond yields.

Stock markets – The Dow Jones Industrial Average closed the week at 53,559.99, down 0.3% from 53,732.41 last week. It is up 11.4% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,611.76, down 0.8% from 7,674.37 last week. The S&P is up 11.2% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 26,402.42, up 0.9% from 26,170.46 last week. It is up 13.6% year-to-date from 23,241.99 on December 31, 2025.