Economy Gains Jobs; Unemployment Drops
In March, the economy gained 916,000 jobs and revisions added 156,000 more. Strength was seen in the hospitality and construction sectors.
The unemployment rate dropped from 6.2% to 6.0%.
Average hourly earnings, an indicator of wage growth, fell slightly. They were 4.2% higher than a year ago, down from 5.2% last month.
Last week’s key Employment data revealed that companies are hiring back workers let go due to the pandemic even quicker than anticipated. At the end of February, job openings jumped to 7.4 million, well above the consensus forecast.
Unemployment Insurance Claims Drop
The Department of Labor releases the total number of new claims for unemployment insurance each week, and the latest reading was 547,000, the lowest level in over a year.
Consumer Confidence and Spending Spur Economic Growth
Consumer Confidence in the U.S. has increased to the highest level since the beginning of the pandemic. This index from the Conference Board jumped from 90.4 in February to 109.7 in March.
Investors Predict ‘Enormous’ Growth
With the increased delivery of the vaccine and the distribution of stimulus checks, investors have anticipated that economic growth will be enormous this year. The growth and inflation data released this week was stronger than forecasted by economists nearly across the board.
Consumer Spending Grows
During the first quarter, GDP rose at an annualized rate of 6.4%t. Particular strength was seen in consumer spending, boosted by the rollout of the vaccine and the distribution of stimulus checks.
Inflation Rising with Increased Vaccine Rollout and Re-Opening
The reduced economic activity resulting from the pandemic has caused a decline in inflation, which has been one of the factors responsible for record low mortgage rates.
The PPI jumped 1.0% from February, far above the consensus forecast of 0.5%, and it was 4.2% higher than a year ago, the highest annual rate of increase since 2011.
With the vaccine rollout moving forward and the economy reopening, investors are worried that inflation may be heading higher, and this week’s data reinforced those concerns. The CPI was 2.6% higher than a year ago, up from 1.7% last month.
The Core CPI, which excludes the volatile food and energy components, was 1.6% higher than a year ago, up from 1.3% last month.
Home Building Activity Increases; Existing Home Sales Bounces Back
The housing market has benefited from increased economic activity as builders race to construct desperately needed new homes. Housing starts jumped a stronger than expected 19%.
Existing home sales bounced back from the shutdown of much of the economy more quickly than expected and have remained at extremely high levels.
The median existing-home price was 17% higher than last year currently, at a new record of $329,100. Inventory levels were down 28% from a year ago and remained near the lowest since 1982.
For further information on the mortgage rates 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.