Last week, the markets rallied on the Department of the Treasury’s announcement that they will need to borrow less than previously estimated and Fed Chair Powell’s comments following their second straight pause on interest rates. The S&P 500 saw its best week in almost a year, gaining 5.88%. Bonds also rallied on the week, gaining 1.99%. Last week’s market action exemplified why long-term investors should stay invested. After almost three months of negative stock and bond returns, patient investors were rewarded.
This week, Uber, Disney, and Wynn Resorts are among many earnings reports. The 10-year treasury yield is at 4.57%, down from its peak this year of 4.98% on October 19. However, 30-year mortgage rates only decreased slightly to 7.86%. If long-term rates become less volatile and hold around 4.5%, mortgage rates may gradually decline. Lower mortgage rates should increase housing supply and home affordability.
Have a great week, and thanks for reading!
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