Economic update for the week ending July 7, 2018
Crude Oil $73.92 - Gold $1,255.90 - Silver $16.07 - EUR/USD $1.18
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.
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.
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.
Don't rent out your home on Airbnb before you read this - You'd be hard pressed these days to find any homeowners who haven't considered renting out their home on Airbnb or a similar site. It’s certainly tempting to make extra cash on a room that's just sitting empty. But listing your home on Airbnb isn't quite as easy as snapping some photos and posting them online. Many cities across the globe have regulated the short-term lodging service in order to keep guests and homeowners safe and honest. Navigating these rules might seem daunting, but I broke down the basics that first-timers need to know.