U.S. economy adds 213,000 new jobs in June – Unemployment rate ticks up to 4% – The Department of Labor Statistics reported that U.S. employers added 213,000 new jobs in June. Experts had predicted 194,000 new jobs, so this was a very positive report. The unemployment rate increased to 4% as more workers entered the workforce. Average hourly wages were just 2.7% above last June’s level. This was below the 2.8% expected.
Stocks snap a three week losing streak and end the week higher – A better than expected June jobs report, and expectations of a strong second quarter earnings reporting season helped stocks shrug off fears of a global trade war. The Dow Jones Industrial Average closed the week at 24,456.58, up from 24,271.41 last week. It is down 1.1% year to date. The S&P 500 closed the week at 2,759.83, up from 2,718.37. It’s up 3.2% year to date. The NASDAQ closed the week at 7,688.39, up from 7,510.30 last week. It’s up 11.4% year to date.
Treasury Bond Yields drop again this week – The 10 year treasury bond closed the week yielding 2.78%, down from 2.85% last week. The 30-year treasury bond yield ended the week at 2.94%, down from 2.98% last week. We watch bond rates because mortgage rates follow bond rates.
Mortgage Rates down this week – The July 5, 2018 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.52%, down from 4.55% last week. The 15 year fixed was 3.99%, down from 4.04% last week. The 5-year ARM was 3.74% down from 3.87% last week.