With the U.S. facing a tight labor market, record-setting inflation, and supply chain issues, December 2021 mortgage markets fluctuated.
As the holiday season approaches, the inflation frenzy continues. Currently, the U.S. faces a cavalcade of supply chain disruptions.
This past week saw luxury home sales rise as the market overcomes age-old housing challenges. Although the market saw little economic news, mortgages rates also rose. Ultimately, investors still focus on higher inflation.
As the U.S. returns to "normalcy", analysts see strong inflation data while the economy reopens. Job openings hit record highs. The housing market continues to grow. More Americans are getting their COVID-19 vaccinations. And inflation shows renewed intrigue. But most importantly, investors observe how each of these components affect mortgage-backed securities. Analysts See Strong Inflation Data While the Economy Gains Jobs April's release of labor market and manufacturing data proved stronger than expected. While the stronger than expected return contributed to analysts seeing strong inflation data, mortgage rates barely changed. Employment Report The highly anticipated monthly employment report revealed very impressive results. In March 2021, the economy gained 916,000 jobs. Overall, this rose far above the consensus forecast of 625,000. In addition, analysts supplied added 156,000 jobs to prior month results. In particular, the hospitality and construction sectors displayed strength. This is especially interesting because both of these sectors suffered blowbacks during the pandemic. Average Hourly Earnings Average hourly earnings, an indicator of wage growth, fell slightly from February. Thus, the result did not reach the consensus, but saw a modest increase. Compared to 2020, average hourly earnings jumped 4.2% higher than a year ago. However, average hourly earnings dropped [...]
Looking at the recent data, new home sales skyrocket though mortgage markets barely changed. Mixed economic data caused little reaction.