TRADE OPTIMISM SETS RECORDS… Growing optimism all week that the long-running trade dispute with China would be resolved powered the markets to new highs for the Dow, the S&P 500, and the Nasdaq.
The President said he hadn’t yet agreed to trim tariffs in stages, but that didn’t derail the rally amidst decent Q3 corporate earnings and a brightened consumer mood as reported by the U. of Michigan consumer sentiment index.
As one analyst put it, “It’s really hard to have a recession, or some sort of crisis, when you have full employment, a friendly Fed and a government that’s lowering regulations and has lowered taxes.”
The week ended with the Dow UP 1.2%, to 27,681; the S&P 500 UP 0.9%, to 3,093; and the Nasdaq UP 1.1%, to 8,475.
As equities headed up, bonds went the other way. The 30YR FNMA 4.0% bond ended down .23, at $103.52. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate fell back, and is now 1.25% lower than a year ago. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?… The Census Bureau reports that more than 40% of renters were cost-burdened in 2018, spending at least 35% of income on housing costs. But only 21% of homeowners with a mortgage were similarly cost-burdened, down from 29% ten years ago.