Stock markets ended the week higher on positive inflation reports – This week the CPI (consumer price index), the government’s broadest measure of inflation, showed that consumer prices were 5% higher in March than they were last March. While still higher than the Fed’s 2% target range, 5% was the lowest annual consumer price increase in a year. It peaked at 9.1% and has steadily worked its way down. Many experts feel that the Fed will be in a position to stop raising rates soon and may even be able to lower rates near the end of the year or in early 2024. The Dow Jones Industrial Average closed the week at 33,886.47, up 1.2% from 33,485.29 last week. It is up 1.6% year-to-date. The S&P 500 closed the week at 4,137.64, up 0.8% from 4,105.02 last week. It is up 7.7% year-to-date. The NASDAQ closed the week at 12,123.47, up 0.3% from 12,087.96 last week. It is up 15.8% year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 3.52%, up from 3.38% last week. The 30-year treasury bond yield ended the week at 3.74%, up from 3.61% last week. We watch bond yields because mortgage rates follow bond yields.
Mortgage rates – The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of April 13, 2023, were as follows: The 30-year fixed mortgage rate was 6.27%, almost unchanged from 6.28% last week. The 15-year fixed was 5.54%, down from 5.64% last week.