With COVID numbers growing but unemployment aid ending, it’s a possibly very unstable time for the economy as experts continue to monitor the ever-changing situations across the country concerning inflation, job growth, and the housing markets.
Powerful Job Gains is Good News for Economy
The economy gained 943,000 jobs in July, above the forecast of 850,000.
The leisure and hospitality sectors added the newest jobs, tallying a massive 380,000 additional positions.
The unemployment rate also declined from 5.9% to 5.4%, well below the consensus forecast of 5.7%. Average hourly earnings were 4.0% higher than a year ago, up from 3.7% last month.
Inflation Levels Rise
The core Consumer Price Index (CPI) is a closely watched inflation indicator and the results of the report were roughly in line with the expected levels.
In July, the CPI index rose just 0.3%, down from a massive increase of 0.9% last month, as price gains. The Core CPI was 4.3% higher than a year ago, down from an annual rate of increase of 4.5% last month, a level not seen since 1991.
Housing Starts Fall; Obstacles for Growth Remain
Given the critical need for more homes in many areas, investors have been closely watching the monthly reports on housing starts, and the latest data contained mixed news. In July, housing starts fell 7% from June, but still were higher than a year ago.
By contrast, building permits, a leading indicator of future activity, increased 3%. Rising prices and shortages for land, materials, and skilled labor remained obstacles to a faster pace of construction.
In July, sales of existing homes rose 2% from June and were slightly higher than a year ago. Inventory levels were down 12% from last year at this time, at just a 2.6-month supply nationally, well below the 6-month supply which is considered a healthy balance between buyers and sellers. The median existing-home price was $359,900, up 18% from a year ago.
Looking Ahead After Powerful Job Gains
Investors will continue to watch the COVID-19 situation as infections continue to rise. Additionally, the impending end of federal unemployment aid could have a significant impact on the economic recovery from the 2020 pandemic.
Want to know how the latest housing and employment data affect your real estate closing? Get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Information accredited to MBSQuoteline.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.