What does another good job report mean for a recession?
What does it mean to get a positive job report with all the talk about a recession, which ramped up starting in January 2022? Let’s look at the U.S. jobs and economic numbers as five of my six recession red flags are up today. The June data shows that we added another 372,000 jobs as we get closer to the employment numbers before COVID-19. We did have 74,000 negative revisions to the previous reports, however, the internals of this jobs report is the most interesting aspect. Let’s take a look together.
Mortgage Rates Rise Again After Recording Sharp Drop
Mortgage rates increased for the first time in three weeks. The average rate on a 30-year fixed-rate mortgage rose to 5.51%, mortgage-finance giant Freddie Mac said Thursday. That is up from 5.30% last week, when rates recorded the largest weekly decline since December 2008, but below the 13-year high of 5.81% recorded in June. A year ago, the 30-year mortgage averaged 2.88%.
With home sales down, why are home prices still up?
I labeled this market savagely unhealthy earlier this year because I knew what this data would look like. Home prices are growing even with higher rates, so we aren’t benefiting from falling home prices, even though sales are dropping. This has happened before when rates rose, sales fall, and price growth would cool down but not go negative. However, it’s a different ball game here in 2020-2024.
City and County Market Trends Reports | JUL. '22
Quick look at City and County Market Trends Reports featuring June data. These 48 downloadable reports are comprehensive and a fantastic member benefit.