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Economic Update for the Week Ending August 13th, 2021

Stock markets closed the week at record highs – Stocks closed the week at record highs. Investors were reassured about the strength of the economy, and the possibility of inflation moderating after the July consumer price report was released. The CPI index, the broadest measure of inflation, showed that consumer prices rose 5.4% year-over-year in July. While that was one of the highest year-over-year increases in over a decade, it was below what experts predicted. The Dow Jones Industrial Average closed the week at 35,515.38, up 0.9% from 35,208.52 last week. It is up 15.9% year-to-date.  The S&P 500 closed the week at 4,468.00, up 0.7% from 4,436.52 last week. It is up 18.9% year-to-date. The NASDAQ closed the week at 14,822.90, down 0.1% from 14,835.76 last week. It is up 15% year-to-date.

Business people discussing the charts and grap

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.29%, down from 1.31% last week. The 30-year treasury bond yield ended the week at 1.94%, unchanged from 1.94% last week. We watch bond yields because mortgage rates often follow treasury bond yields. 

Mortgage rates – The August 12, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.87%, up from 2.77% last week. The 15-year fixed was 2.15%, up from 2.10% last week. The 5-year ARM was 2.44%, up from 2.40% last week. 

July home sales figures will be released by the California Association of Realtors next week. They will be included in the August 21, 2021 update. You can get July sales figures for your city or zip code now by visiting RodeoRe.com.

Sources:

  1.  Rodeo Realty, Inc.
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