Financial Replace For The Yr Ending December 31, 2021

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Inventory markets had one other stellar yr in 2021: Whereas the world didn’t return to regular because of the full results of the pandemic, it did come a good distance from the total shut in 2020. A full financial reopening, trillions of {dollars} in stimulus and traditionally low rates of interest pushed shares to file highs. For instance, the S&P hit 70 data this yr, marking probably the most file closings in 25 years. On the identical time, COVID-19 instances had two surges throughout the yr, the world suffered a provide scarcity on account of manufacturing unit closures throughout the pandemic, there was a labor scarcity because the labor participation charge ( the variety of individuals of working age working or on the lookout for work) fell to traditionally low ranges, and inflation rose to the very best ranges since 1982. After a few years of historic rises in inventory costs, we’ll see if inflation and better rates of interest hit the inventory markets in 2022 or if we’ve one other yr of dramatic beneficial properties. The Dow Jones Industrial Common ended the yr at 36,338.30, 18.7% increased than the 30,606.48 on the finish of 2020. The S&P 500 closed the yr at 4,766.18, 26.9% increased than the three,756.07 on the finish of 2020. The NASDAQ closed at 15,644.97, a rise of 21.4% from 12,888.28 as of December 31, 2020.

US Treasury Yields Rise to Pre-pandemic Ranges in 2021: The ten-Yr US Treasury Yield ended the yr at 1.52%, down from 0.93% for December 31, 2020. The 30-year Treasury yield ended the yr at 1.90%, in comparison with 1.65% on December 31, 2020.

Mortgage charges ended the yr above all-time lows because of the pandemic, however nonetheless near historic lows: On December 30, 2021, the Freddie Mac Main Mortgage Survey reported that the common of 30-year mounted charge mortgages was 3.11%, in comparison with 2.67% as of December 28, 2020. The 15-year mounted charge was 2.33%, in comparison with 2.17% final December. The 5-year ARM was 2.41%, down from 2.71% on the finish of 2020.

For the month ending December 31, 2021

The Dow Jones Industrial Common closed the month at 36,338.30, a rise of 5.4% from 34,483.72 on the finish of September. It has elevated by 12.7% to date this yr. The S&P 500 closed the month at 4,766.18, 4.4% lower than the 4,567.00 final month. It has elevated by 21.6% to date this yr. The Nasdaq closed the month at 15,644.97, 2.1% greater than 15,537.69 final month. It has elevated by 20.6% to date this yr.

Yields on US Treasuries: The ten-year Treasury bond closed the month with a yield of 1.52%, up from 1.43% final month. The 30-year Treasury yield ended the month at 1.90%, down from 1.78% final month. We take a look at bond yields as a result of mortgage charges typically observe Treasury bond yields.

Mortgage Charges: The Freddie Mac Main Mortgage Survey of December 30, 2021 reported mortgage charges for the most well-liked mortgage merchandise as follows: The 30-year mounted mortgage charge was 3.11%, nearly unchanged from 3.10% from final month. The 15-year mounted was 2.33%, in comparison with 2.42% final month. The 5-year ARM was 2.41%, down from 2.47% final month.

For the week ending January 1, 2022

Inventory Markets: On Wednesday, the S&P 500 hit its seventieth file excessive of the yr earlier than falling on Thursday and Friday. This was because of the speedy charge of unfold and hospitalizations within the newest COVID-19 surge. The Dow Jones Industrial Common closed the week at 36,338.30, up 1.1% from 35,950.56 final week. It has elevated by 18.7% to date this yr. The S&P 500 closed the week at 4,766.18, 0.9% increased than 4,725.79 final week. It has elevated by 26.9% to date this yr. The NASDAQ closed the week at 15,644.97, down 0.1% from 15,653.37 final week. It has elevated by 21.4% to date this yr.

Yields on US Treasuries – The ten-year Treasury closed the week with a yield of 1.52%, nearly unchanged from 1.50% final week. The 30-year Treasury yield ended the week at 1.90%, additionally nearly unchanged from 1.91% final week. We take a look at bond yields as a result of mortgage charges typically observe Treasury bond yields.

Mortgage Charges: The Freddie Mac Main Mortgage Survey of December 30, 2021 reported mortgage charges for the most well-liked mortgage merchandise as follows: The 30-year mounted mortgage charge was 3.11%, down from 3, 05% from final week. The 15-year mounted was 2.33% greater than 2.30% final week. The 5-year ARM was 2.41%, down from 2.37% final week.

US employers added 210,000 jobs in November: The Division of Labor and Statics reported that 210,000 new jobs had been added in November. It was the fewest month-to-month jobs added this yr and fewer than half of the five hundred,000 new jobs economists anticipated. Common hourly wages elevated 4.8% year-on-year. The labor drive participation charge (the proportion of staff with a job or actively on the lookout for work) elevated two-tenths of 1 p.c from the October stage to 61.8%. It stays markedly beneath the 63.6% stage earlier than the pandemic. The unemployment charge was 4.2% in November, down from 6.7% in November 2020. The unemployment report for December can be launched on Friday, January 7, 2022.

Present residence gross sales within the US rose once more in November: The Nationwide Affiliation of Realtors reported that current residence gross sales had been up 1.9% in November from the variety of gross sales in October. That marked three straight months of month-over-month will increase in gross sales at a time of yr when the variety of gross sales would typically decline. Yr-on-year gross sales fell 2% from the earlier yr. The median value paid for a house in the USA was $ 353,900, 13.3% greater than the $ 310,800 final November. There have been 117 consecutive months of year-on-year will increase in residence costs, the longest streak on file. The variety of properties on the market was 13.9% decrease than the variety of properties on the market in November 2020. There was a provide of two.1 months of properties accessible on the market, beneath the availability of two.5 months final November. First-time consumers accounted for 26% of all gross sales. Buyers and second residence consumers accounted for 15% of gross sales. 24% of gross sales had been money purchases.

Foreclosures and quick gross sales accounted for lower than 1% of gross sales. Present residence gross sales embody single-family properties, condominiums, townhomes, and cooperatives.

California Present House Gross sales in November: The California Affiliation of Realtors reported that current residence gross sales totaled 454,450 at a seasonally adjusted annualized charge in November. That marked a month-over-month improve of 4.7% over the seasonal annualized charge of 434,170 in October. Yr-to-date gross sales elevated 10.6% over the identical interval final yr. The median value paid for an current residence in November was $ 782,440, 11.9% greater than final November, when the median value was $ 698,980. There was a 1.6-month provide of properties on the market in November, down from a 1.9-month provide of properties on the market a yr in the past.

Under are regional figures.