Economic update for the week ending April 10, 2021

Stock market indexes closed the week at record highs – As the economy is recovering quickly from the effects of the pandemic, investors have pushed up stock prices. 

• The Dow Jones Industrial Average closed the week at 33,800.60, up 2.0% from 33,153.21 last week. It is up 10.3% year-to-date. 
• The S&P 500 closed the week at 4,128.80, up 2.7% from 4019.87 last week. It is up 9.7% year-to-date. 
• The NASDAQ closed the week at 13,900.19, up 2.6% from 13,480.10 last week. It is up 7.2% year-to-date.

 U.S. Treasury bond yields - The 10-year treasury bond closed the week yielding 1.67%, down from 1.72% last week. The 30-year treasury bond yield ended the week at 2.34, unchanged from 2.35% last week. We watch bond yields because mortgage rates often follow treasury bond yields. 

 Mortgage rates - April 08, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: 

• The 30-year fixed mortgage rate was 3.13%, down from 3.18% last week. 
• The 15-year fixed was 2.42%, down slightly from 2.45% last week. 
• The 5-year ARM was 2.93%, up from 2.84% last week. 

 The Fannie Mae Home Purchase Sentiment Index strengthened in March – Americans are more upbeat about the idea of buying and selling a home according to Fannie Mae’s Home Purchase Sentiment Index which rose to a reading of 81.78 in March. That marked a 5.2 point increase from the February reading. The index is done from a tabulation of responses from consumers surveyed by Fannie Mae. Some of the results were: 

• 61% of consumers said it was a good time to sell, up from 55% in February.
• 53% of consumers said it was a good time to buy, up from 48% in February. 50% of consumers said that home prices will go up over the next 12 months, up from 47% in February. 
• 82% of consumers said they are not concerned about losing their jobs. 
• 25% of consumers said their household income is significantly higher than it was 12 months ago, up from 17% in February.

 Have a great weekend!