Daily Market Color March 30, 2021Rate Market Volatile as Investors Digest More Stimulus Equities decrease while rates hit 14-month highs As investors weigh the potential of another wave of trillions in government spending (and debate over where the funds will come from), all three major indices finished slightly down on the day. Rates were volatile throughout the trading session, with the 10yr UST yield reaching a 14-month high at 1.77% before settling back down near 1.72%. Housing prices increase the most since 2006 The housing market continues to rally in 2021 with home property values increasing 11.2% per the S&P CoreLogic Case-Shiller index. Cheap borrowing and low supply have fueled the increase in home prices since June 2020. The surge in prices did show some moderation in January per a separate report from the FHFA. The FHFA reported home prices increased 1.0% in January, representing the lowest month-over-month increase since June 2020. Consumer confidence has sharpest gain in 18 years As vaccination roll-outs continue to expand and economies start to open, consumer confidence has hit a 1-yr high. The Conference Board’s index increased to 109.7 in March, up from 90.4. This is the highest one-month increase in 18 years of the survey.
