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Economic update for the week ending May 1, 2021

Economic update for the week ending May 1, 2021

Stocks down slightly this week – Stock markets lost a little ground again this week. That marked the second week of small loses after weeks of gains and record highs. Corporate profits are up, the economy has largely reopened, and stimulus money has improved consumer spending to pre COVID-19 levels. At the same time the prospects of tax hikes and increases to the capital gains rates has investors’ more cautious. The Dow Jones Industrial Average closed the week at 33,874.85, down 0.5% from 34,043.49 last week. It is up 10.7% year-to-date. The S&P 500 closed the week at 4,181.17, unchanged from 4,180.17 last week. It is up 11.3% year-to-date. The NASDAQ closed the week at 13,962.68, down up 0.4% from 14,016.81 last week. It is up 8.3% year-to-date.it

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.65%, up from 1.59% last week. The 30-year treasury bond yield ended the week at 2.30%, up from 2.25% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The April 29, 2021,Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.98%, unchanged from 2.97% last week. The 15-year fixed was 2.31%, almost unchanged from 2.29% last week. The 5-year ARM was 2.64%, down from 2.83% last week.

Have a great weekend!

Matthew Paul