Hope you had a fantastic Fourth of July holiday!
As the possibility of recession increases based on the latest GDP (gross domestic product) data released and high inflation, mortgage rates paused their upward trend last week, even showing slight improvement. This pause should help the housing market rebalance to a more normal pace of home price appreciation, says Freddie Mac’s weekly survey.
So, if you’ve been considering a purchase and have been sitting on the sidelines, now could be a great time to start looking again! Reach out to me and let’s look over your options and put together a plan. Call or text me at 818.307.6072.
And with the Supreme Court overturning Roe v. Wade and sending the decision on abortion rights back to the states, many are considering how this will affect real estate and Americans’ decisions to move. Redfin gave us some possible insight with the results of a survey of homeowners that recently moved to reveal that:
• 40% of homeowners said they will only live in a state where abortion is legal
• 32% don’t want to live in a state where abortion is legal
• 28% said they don’t care
As for what I’m watching this week…
We have a busy, holiday-shortened week, all culminating with Friday’s Jobs Report, the most important and impactful economic report of the month.
The parade of employment reports begins on Thursday with the ADP report on private-sector job creation. The consensus forecast for ADP’s June private-payroll estimate is plus 200,000. Looking back at May, ADP’s estimate for substantially slowing growth of 128,000 compared with moderately slowing growth of 333,000 in the government’s data.
On Friday we get a look at the government’s jobs report numbers. A rather healthy 270,000 rise is the consensus for job creation in June which would compare with a stronger than expected 390,000 in May. Average hourly earnings are expected to rise 0.3 percent on the month to match 0.3 percent gains in both May and April. June’s annual rate of wage inflation is expected to slow to 5.0 percent from 5.2 and 5.5 percent in the two prior months.
As for the unemployment rate, it is expected to remain steady at 3.6 percent with the workforce participation rate at 62.3 percent, also steady.
I’ll be keeping an eye on how the jobs reports are affecting rates and report back next week. Have a great one
