With the attack of Manchester, there has been a lot of hype that is written each day about the markets. Yet, the have ended in the same position they ended… If you think about it we could have taken the week off!
The Dow closed at 21,080, 181 points higher than last Friday. The Nasdaq and S & P set new records today but they have set records all week. Oil closed at $49.71 80 cents higher than the start but visited $52 and $47.00 this week. While the Dollar was mostly unchanged and so was the 10-year yield which started, and ended the week at 2.24%.
Today's data of a slightly better GDP to 1.2% (woo-hoo) and a decline in durable goods orders. Combine that with other recent data, and it reveals that we have non-existent consumers. They are spending less and that is a drag on the economy as they represent the lion's share of GDP. With home prices climbing, income not following suit, and rates poised to rise, this will also create a drag on the economy as more and more people will no longer qualify for a new mortgage. I say that there is a recession in the offing…No-one likes a recession but in the long run, they are good for mortgage rates, as the economy slows down. We can’t complain with 30-year fixed rates at 3.75% and 0 points but we always want better.
Happy Memorial Day weekend readers, stay safe, enjoy the sun while we have it, and lastly many thanks to those that have served!