Stock markets closed slightly higher – Stocks closed the week higher. It marked the fourth straight week of gains for the S&P and the seventh straight week of gains for the Nasdaq. Next Tuesday the Consumer Price Index (CPI), the broadest measure of inflation, for May will be released. On Wednesday the Fed will announce whether they will raise their key interest rates, or leave them unchanged. Most economists expect them to “take a pause” on rate hikes and leave them unchanged. Some economists predict a ¼% increase. Last week’s Job’s report showed that hiring picked up in May. Nearly double the number of new jobs were created than economists expected. The May CPI number will surely weigh into the Fed’s decision. The Dow Jones Industrial Average closed the week at 33,876.78, up 0.3% from 33,762.76 last week. It is up 2.2% year-to-date. The S&P 500 closed the week at 4,298.14, up 0.4% from 4,282.37 last week. It is up 12% year-to-date. The Nasdaq closed the week at 13,259.14, up 0.1% from 13,240.77 last week. It is up 26.7% year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 3.75%, up from 3.69% last week. The 30-year treasury bond yield ended the week at 3.89%, down from 3.88% 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 June 8, 2023 were as follows: The 30-year fixed mortgage rate was 6.71%, down from 6.79% last week. The 15-year fixed was 6.07%, down from 6.18% last week.
Home sales data for May should be released around the end of next week. I would expect prices to be up 3%-5% month-over-month in May from April, but down from last May’s prices. We have made up a good percentage of the steep price drops that we saw from July 2022 to February 2023.