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NASDAQ and S&P 500 closed the week at all-time record highs

Strong corporate earnings, lower interest rates, and an easing of trade tensions encouraged investors who pushed stocks to record highs. A strong first-quarter GDP report released Friday showed that the economy grew 3.2% in the first quarter of 2019, its best first-quarter showing in six years.

The Dow Jones Industrial Average closed the week at 26,543.33, down 0.1% from 26,559.54 last week. It’s up 13.8% year-to-date. The S&P 500 closed the week at 2,938.88, up 1.2% from 2,905.03 last week. It is up 17.3% year-to-date. The NASDAQ closed the week at 8,146.40, up 1.9% from 7,998.06 last week. The NASDAQ is up 22.8% year-to-date. 

Treasury bond yields lower this week

The 10-year treasury bond closed the week yielding 2.51%, down from 2.57% last week. The 30-year treasury bond yield ended the week at 2.92%, down from 2.96% last week. We watch treasury bond yields because mortgage rates follow bond yield yields. 

Mortgage rates almost unchanged this week 

The April 25, 2019, Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.20%, up slightly from 4.17% last week. The 15-year fixed was 3.64%, up slightly from 3.62% last week. The 5-yearARM was 3.77%, almost unchanged from 3.78% last week.

March U.S. existing home sales report

The National Association of Realtors reported that the total number of existing home sales dropped 5.4% year over year from the number of sales last March. The median sales price increased 3.8% year over year. Inventory levels were up 2.4% from the number of homes for sale last March. The unsold inventory level represented a 3.9 month supply of homes for sale, up from a 3.6 month supply one year ago. 


Stock market terms defined

  • ARM – “A 5-year ARM is a loan with a fixed rate for the first five years. After that, it has an adjustable rate.” (LendingTree.com
  • Bull market – “The condition of a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.” (Investopedia.com)
  • Down Jones Industrial Average – “An index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ.” (Investopedia.com)
  • Federal Reserve System – “Often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.” (FederalReserve.gov)
  • Freddie Mac – (Federal Home Loan Mortgage Corporation or FHLMC) “A government-owned corporation that buys mortgages and packages them into mortgage-backed securities.” (TheBalance.com)
  • Mortgage – “An agreement that allows you to borrow money from a bank or similar organization (such as a credit union) by offering something of value, esp. in order to buy a house or apartment” (Cambridge Dictionary
  • NASDAQ – Acronym for the National Association of Securities Dealers Automated Quotations. “A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.” (Investopedia.com)
  • S&P 500 – “The S&P 500 index is a basket of 500 of the largest U.S. stocks, weighted by market capitalization. The index is widely considered to be the best indicator of how large U.S. stocks are performing on a day-to-day basis.” (Motley Fool)
  • Stock market – “The stock market is where investors buy and sell shares in public companies.” (NerdWallet.com)
  • Treasury bond yield – “Treasury yields are the total amount of money you earn by owning U.S. Treasury bills, notes, or bonds. The U.S. Treasury Department sells them to pay for the U.S. debt. … Treasury yield prices are based on supply and demand.” (The Balance.com)

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