The markets responded positively to calmer conditions in the Middle East this week, with the S&P reaching a new all-time-high on Wednesday. The cease fire held until yesterday when the U.S. and Iran forgot what “cease fire” meant and exchanged missiles. President Trump insists that last night’s rendezvous was nothing more than a “love tap”. This morning the cease-fire is back on. Investors cautiously keep hoping that political—and thus economic—stability is on the Hormuz’ horizon. While international tensions remain elevated, the punch-drunk euphoria of bloated equity portfolios on Wall Street is keeping fingers off the sell button.
Back on the home front (pun intended): Nationally, New Home Sales spiked to the upside by almost 8% this week. The stronger-than-expected reading suggests housing demand remains resilient despite the recent spike in mortgage rates and ongoing geopolitical uncertainty. In Utah, all home sales are up 7% year-over-year, and the median sales price has risen 3.8% to $519,800.
Interest rates began the week continuing the climb that commenced mid-April, but that trend was speedily reversed on Wednesday when the President announced the cease-fire and a pending end to the kerfuffle in the Strait.
