| This week marked the 39th day of the government shutdown, the longest shutdown in U.S. history. Investors, who had shaken off the shutdown until this week, sold stocks in the worst stock market week since April, fearing that the shutdown would slow the economy. The University of Michigan consumer sentiment report showed that consumer confidence hit its lowest level since June 2022, when inflation peaked at 9.2%. The Bureau of Labor Statistics did not release its Jobs and unemployment report, which was due Friday, November 7 for the second consecutive month due to the shutdown. Limited economic data has investors confused about the state of the jobs market, inflation, retail sales, and other factors that they routinely watch to determine the state of the economy.
Stock Markets – Stock markets had their worst week since April. The Dow Jones Industrial Average closed the week at 46,987.10, down 1.2% from 47,562.87 last week. Year-to-date, it is up 5.5% from 44,544.66 on December 31, 2024. The S&P 500 closed the week at 6,728.80, down 1.6% from 6,840.20 last week. Year-to-date, the S&P is up 11.4% from 6,040.53 on December 31, 2024. The Nasdaq closed the week at 23,004.54, down 3% from 23,724.96 last week. Year-to-date, it is up 17.2% from 19,627.44 on December 31, 2024. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.11%, unchanged from 4.11% last week. The 30-year treasury bond yield ended the week at 4.70% up slightly from 4.67% 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 November 6, 2025, were as follows: The 30-year fixed mortgage rate was 6.22%, up from 6.17% last week. The 15-year fixed was 5.5%, up from 5.41% last week. The graph below shows the trajectory of mortgage rates over the past year. Housing became more affordable in the third quarter of 2025 – The California Association of Realtors reported that 17% of California households could afford to purchase the $887,380 median-priced home in the third quarter of 2025, up from 15% in the second quarter of 2025, and up from 16% in the third quarter of 2024. A minimum annual income of $223,600 was needed to make monthly payments of $5,590, including principal, interest, taxes, and insurance on a 30-year fixed-rate mortgage at a 6.67 percent interest rate. Twenty-seven percent of home buyers were able to purchase the $649,990 median-priced condo or townhome. A minimum annual income of $163,600 was required to make a monthly payment of $4,090. Have a Great Weekend! |
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