Memorial Day Thoughts
It is hard to believe that we have already celebrated Memorial Day in 2017. Doesn’t it seem that this year is going particularly fast? On Memorial Day, we remembered those who died in service to our country, a tradition that goes back as far as the Civil War and was originally known as Decoration Day. While there are ceremonies and parades going on across our country, the average American is also participating in Memorial Day picnics because good weather has finally arrived throughout the country.
Yes, the timing of Memorial Day is also the unofficial start of the summer. The kids are heading into their last weeks of school, vacations are starting and many people are moving because of the homes they have purchased during the spring homebuying season. This means that Americans are also meeting their new neighbors and becoming part of different communities — a very joyous occasion.
While we all enjoy the picnics and new homes, we should not forget the meaning of Memorial Day and its roots which came from a time when our Nation was literally torn apart. We mention this because today again our country is divided, and while differences of opinions are part of what makes our Democracy great, we hope that our divides heal over time because the more energy we expend focused upon conflicts, the less we can focus upon progress. Speaking of progress, we may take off for Memorial Day weekend, but the economy does not. We have another reading on our employment situation coming up this week — always an interesting time for the markets.
The Weekly Market Update
Rates were down last week to their lowest level of the year. For the week ending May 25, Freddie Mac announced that 30-year fixed rates fell to 3.95% from 4.02% the week before. The average for 15-year loans decreased to 3.19%, and the average for five-year adjustables moved down to 3.07%. A year ago, 30-year fixed rates averaged 3.64%.
Attributed to Sean Becketti, chief economist, Freddie Mac -- "As we predicted, the rate on 30-year fixed loans fell 7 basis points this week in a delayed reaction to last week's sharp drop in Treasury yields. The survey rate stands at 3.95 percent today, a new low for the year."
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.