Stock markets ended the week higher – Stock markets recovered from some of the banking issue loses this week as investors became optimistic about the outlook of interest rates. Bond yields and term interest rates have significantly dropped since the banking crisis began two weeks ago. Although the Fed did hike their key overnight rate by ¼% this week, they signaled that there may be one more ¼% hike, rates are near the maximum level that they feel is necessary 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%, virtually unchanged from 3.60% last week. The Real Estate industry watches bond yields because mortgage rates follow bond yields.
Mortgage rates – The Freddie Mac Primary Mortgage Survey reported that mortgage rates for 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. Anticipation consensus is that next week’s survey rates are likely to be lower.
U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 4.58 million units on a seasonally adjusted annualized rate in February, down 22.9% from an annualized rate of 5.92 million last February. The median price for a home in the U.S. in January was $363,000 down 0.2% from $363,700 one year ago ending a record 131 consecutive months of year-over-year increases in the median price in the U.S. There was a 2.6-month supply of homes for sale in February, up from a 1.7-month supply last February. First-time buyers accounted for 27% of all sales. Investors and second-home purchases accounted for 18% of all sales. All-cash purchases accounted for 28% of all sales. Foreclosure and short sales accounted for 2% of all sales.
Precious Metals
March 24, 2023 Spot Gold $1978.20
March 24, 2023 Spot Silver $23.21
Physical Gold and Silver are trading at percentages over actual metallic content.
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Recent news headlines should remind us we are living in unprecedented and tragic times.
Be kind and optimistic.