Stock markets closed the lower this week – Stocks lost ground based on fears that interest rates will remain high for a longer period than previously expected. This is due to another round of strong economic news. New data suggests there is renewed strength in the labor market as jobless claims dropped to their lowest levels since February. Worker productivity increased by 3.5% last quarter, a level not seen since 2017. The dollar strengthened. It’s up 5.6% from July. Oil prices also rose to a 9-month high, placing pressure on inflation. Next week we will get retail sales and inflation data for August. The Dow Jones Industrial Average closed the week at 34,576.59, down 0.8% from 34,837.71 last week. It is up 4.3% year-to-date. The S&P 500 closed the week at 4,457.59, down 1.3% from 4,515.77 last week. It is up 16.1% year-to-date. The Nasdaq closed the week at 13,761.53, down 1.9% from 14,031.81 last week. It is up 31.5% year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.26% up from 4.18% last week. The 30-year treasury bond yield ended the week at 4.33%, up from 4.29% 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
September 7, 2023, were as follows: The 30-year fixed mortgage rate was 7.12%, down slightly from 7.18% last week. The 15-year fixed was 6.52% up from 6.11% last week.