Economic Update | Week Ending November 14, 2026

Economic Update for the Week – Stocks rebounded this week despite a sharp increase in Treasury bond yields, which typically puts downward pressure on stock prices and pushes mortgage rates higher. Investors appeared to focus on continued economic growth and strong corporate earnings, particularly in the technology sector, despite concerns about persistent inflation. Bond investors, however, reacted to higher inflation readings and growing uncertainty about when the Federal Reserve will resume cutting interest rates. Higher inflation expectations generally cause investors to demand higher yields on Treasury bonds. The result was an unusual week in which stock prices rose sharply while bond yields also increased, reflecting optimism about corporate profits but continued concern about inflation and interest rates.

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 November 12, 2026, were as follows: The 30-year fixed mortgage rate was 7.11%, down from 7.18% last week. The 15-year fixed was 6.45%, down from 6.57% last week.

Inflation – Consumer Price Index (CPI) – The Bureau of Labor Statistics Consumer reported that prices rose 0.4% in October, following a 0.6% increase in September. The increase was higher than economists had expected. Core CPI, which excludes food and energy, rose 0.3%. Food prices increased 0.5%, energy prices rose 0.7%, and shelter costs increased 0.3%. The Bureau of Labor Statistics was unable to report a year-over-year inflation rate for October because the federal government shutdown in October 2025 prevented the collection of most consumer price data that month. Without October 2025 figures, there is no comparable data to calculate the annual inflation rate for October 2026. Producer Price Index (PPI) – Wholesale prices rose 0.3% in October, following a revised 1.4% increase in September. The annual PPI inflation rate increased to 6.5%, its highest level since November 2022. Core producer prices, excluding food, energy, and trade services , increased 0.5% for the month and 4.9% year-over-year. Although the monthly increase was less than economists expected, the elevated annual rate indicates that inflationary pressures remain significant. These figures raise concerns that businesses will pass higher costs on to consumers, making it more difficult for the Federal Reserve to lower interest rates.

U.S. Treasury Bonds – The 10-year treasury bond closed the week yielding 5.15% up from 4.86% last week. The 30-year treasury bond yield ended the week at 5.47%, up from 5.26% last week. We watch bond yields because mortgage rates follow bond yields.

Stock Markets – The Dow Jones Industrial Average closed the week at 52,347.55 up 2.1% from 51,285.73 last week. It is up 8.9% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,561.67, up 2.5% from 7,376.86 last week. The S&P is up 10.5% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 25,136.27, up 2.3% from 25,579.92 last week. It is up 8.2% year-to-date from 23,241.99 on December 31, 2025.

Home sales – The National Association of Realtors and the California Association of Realtors tabulate home sales data in the second and third week of the month for the previous month. The National Association of Realtors has released its October report, and the California Association of Realtors will release its October existing-sales report next week.

U.S. October Existing-Home Sales – The National Association of Realtors reported that existing-home sales fell 5.5% in October from September to a seasonally adjusted annual rate of 3.75 million homes, down 8.8% from October 2025. Sales fell to their lowest level since August 2010. The median existing-home price was $416,700, up 0.4% from one year ago. Inventory increased to 1.59 million homes, representing a 5.1-month supply, up from 4.4 months one year ago. First-time buyers accounted for 29% of sales, down from 32% a year ago. All-cash buyers accounted for 29% of transactions, unchanged from one year ago. Individual investors and second-home buyers combined accounted for 20% of sales, up from 16% a year ago. Distressed sales, including foreclosures and short sales, represented just 2% of transactions, unchanged from last year.