Review of Last Week

INVESTOR WALLETS REOPEN TOO... As the economy slowly reopened, investors reopened their wallets. Following the buying spree, the three major market indexes posted sharp gains for the week and month. Uncertainty over Sino-U.S. relations arose after China tightened its grip on Hong Kong. The U.S. responded with strong measures, but investors were happy the President brought up neither tariffs nor the Phase One trade deal. Personal Income spiked 10.5% in April, boosted by the CARES Act stimulus checks and extra jobless benefits. The personal savings rate rocketed to a record 33.0%, and that money could certainly help speed the recovery. The week ended with the Dow UP 3.8%, to 25,383; the S&P 500 UP 3.0%, to 3,044; and the Nasdaq UP 3.4%, to 9,490. There were enough China worries to lift bond prices. The UMBS 3.5% ended UP 0.11, to $105.50. The national average 30-year fixed mortgage fell to a new all-time low in the 50-year history of Freddie Mac's weekly Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. DID YOU KNOW?... Freddie Mac says “unprecedented rates” are why “purchase demand rebounded from a 35% year-over-year decline in mid-April to an 8% increase as of last week,” even with “the sharp contraction in economic activity.”