Last Week: -1.84%
YTD: 4.50%
1 Year: 21.88%
Dow Jones Industrial Average
Last Week: 0.71%
YTD: 1.29%
1 Year: 14.51%
Last Week: -3.84%
YTD: 1.77%
1 Year: 28.05%
Last Week: -1.35%
YTD: -3.53%
1 Year: 10.27%
YTD: 4.54%
1 Year: 30.67%
YTD: 3.77%
1 Year: 13.25%
Retail Sales Grow
Consumers remain resilient despite inflation pressure. Retail sales increased 0.7% in March, much more than the 0.3% analysts had forecasted. A rise in gas prices helped push the retail sales data higher, with sales up 2.1% at the pump. However, the largest increase came from online shopping sales up 2.7%. It is not all optimistic, though, as strong retail sales could be a deciding factor when the Fed meets and could hold off on decreasing interest rates this year.
College Graduation Declining
For the second straight year, the number of students earning college degrees has declined. Fewer high school graduates are seeking a bachelor’s degree from four-year universities. Many are instead opting to earn a certificate towards a career path or entering the workforce right from high school. Undergraduate degree earners dropped by 3% in 2023, the largest decline recorded. With student loan payments and massive tuition increases, it is not hard to see why new high school graduates are not seeking a bachelor’s degree. Historically, going to community college or earning a 2-year degree was the economical alternative to a bachelor’s degree, but we are now seeing a declining rate of community college student enrollment.
Mortgage Rates Spike
The average rate on a 30-year fixed mortgage note hit 7.5%. This is the highest rate since mid-November 2023. Despite the high rates, mortgage applications to purchase a home rose 5% last week compared to the previous week. Demand was still 10% lower compared to a year ago. New home builders were buying down rates from new home buyers and fared better than existing home sellers for most of last year. The level of supply on the market has increased, but it is still at a historically low level. Homes have been moving faster because of the lower supply. With a looming interest rate cut, it may be a while for anyone waiting for rates to drop before buying a home.
