Weekly Market Update

Stocks fell this week due to a combination of market instability and regulatory changes that have sparked concerns about the future of trading on Wall Street.

The 10-year Treasury yield moved higher after Iran reportedly stopped communication with the US, further clouding the prospects for a deal to end the conflict. Mortgage rates continue to rise, which may also block consumers from qualifying for a mortgage according to new research.

Bitcoin trails stocks by most since 2019 as traders get their kicks elsewhere. Stocks are down due in part to regulatory approval of perpetual futures for bitcoin, which has ignited concerns that a new wave of trading products could pose an existential threat for Wall Street.

Berkshire's bet on Taylor Morrison suggests the housing market may have bottomed.

MARKET SNAPSHOT:

• Stocks: The Dow Jones fell 2.1% and the S&P 500 dropped 2.3% this week due to a combination of market instability and regulatory changes.
• Mortgage Rates: Mortgage rates continue to rise, with the average rate for a 30-year fixed mortgage now above 7%, making it even harder for people to qualify for a mortgage.
• The 10-year Treasury yield moved higher after Iran reportedly stopped communication with the US.

WHAT HAPPENED AND WHY IT MATTERS:

The housing market may be stabilizing. Berkshire Hathaway's investment in Taylor Morrison Home, one of the top 10 publicly traded homebuilders, suggests that the housing market may have bottomed out. This is good news for people who are considering buying or selling a house.

However, mortgage rates continue to rise, making it harder for people to qualify for a mortgage. The average rate for a 30-year fixed mortgage now above 7%, which is higher than it was last year at this time. This could make it even harder for people to afford homes.

The value of Bitcoin has also fallen sharply this week, down by more than 10% in the past few days. This is partly due to regulatory changes that have made trading on Wall Street more complicated and risky.

WHAT TO WATCH NEXT WEEK:

• Next week's job numbers will be released, which could give us a better idea of whether or not the labor market is still growing.
• The Federal Reserve will also meet next week to discuss interest rates. This could have a big impact on the housing market and other sectors.