CERTAINTY BEATS UNCERTAINTY… Overlooking uncertainty about the path of the virus, investors kept stocks heading up, motivated by the emerging certainty the economy is solidly rebounding.
The recent string of economic surprises continued: after its biggest ever monthly gain, the June ISM Non-Manufacturing Index signaled that the services sector, providing almost 80% of our jobs, is expanding again.
Deliveries are getting back to normal, and the Producer Price Index of wholesale price inflation dipped, a good sign consumer prices should hold steady. Finally, initial jobless claims have now fallen 14 weeks in a row.
The week ended with the Dow UP 1.0%, to 26,075; the S&P 500 UP 1.8%, to 3,185; and the Nasdaq UP 4.0%, to 10,617.
As equities jumped, bonds slid. The UMBS 3.0% ended down 0.39, to $105.19. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate set a new all-time record low. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?…The first quarter saw a record $6.5 trillion in tappable home equity—the amount a homeowner with a mortgage can borrow while maintaining 20% equity. Black Knight [em.mediacenternow.com] says more than 75% of homeowners are viable refinance candidates who could tap into equity and lower their interest rate.