Main Content

Economic update for the week ending March 25, 2023

Stock markets ended the week higher – Stock markets recovered from some of their banking crisis loses this week as investors became more optimistic about the future of interest rates. Bond yields and term interest rates have fallen significantly since the banking crisis began two weeks ago. Although the Fed did hike their key overnight rate by ¼% this week, they signaled that while their may be one more ¼% hike, rates are near the maximum level that they feel is needed to slow the economy and tame inflation. Fed Chairman Powell also went out of his way to reassure the public that the banking sector was sound and safe. The Dow Jones Industrial Average closed the week at 32,737.53, up 2.7% from 31,861.98 last week. It is down 1.2% year-to-date. The S&P 500 closed the week at 3,970.99, up 1.4% from 3,916.34 last week. It is up 3.4% year-to-date. The NASDAQ closed the week at 11,823.96, up 1.7% from 11,630.51 last week. It is up 13% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 3.38%, almost unchanged from 3.39% last week. The 30-year treasury bond yield ended the week at 3.64%, almost unchanged from 3.60% 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 March 23, 2023, were as follows: The 30-year fixed mortgage rate was 6.42%, down from 6.60% last week. The 15-year fixed was 5.68%, down from 5.90% last week. Rates were lower on Friday. Next week’s survey rates should be lower.

Get

In Touch

Due to emails occasionally vanishing in cyberspace, if you email us and do not hear back within 2-3 hours, please call 818-970-3000.

    Skip to content