Unemployment data has shown some rather interesting statistics, with the lowest unemployment rates in the last 14 months being reported. Looking closer at the statistics shows that the unemployment rate hasn’t just dropped due to more people finding work, but also because a significant number of people have stopped looking for work, causing the numbers to appear more favorable.
Among analysts, this is a pretty standout example, and currently, the Federal Reserve has made no indication that it plans to change its policies on interest rates, with many members of the board still favoring increasing rates again. Hourly wages have also seen a modest increase, but this growth has been overshadowed by the increase in inflation for quite some time.
Unemployment Report
The unemployment rate fell in June to a 14-month low of 4.2%. Good news, right? Yes and no. The biggest reason the jobless rate fell is that 720,000 people dropped out of the labor force. This is usually a bad sign, as it means people are too discouraged to look for work.
Consumer Confidence
Consumer Confidence Index rose 0.6 point to 91.2 in June, a figure that is still below its year-ago reading of 95.2. Consumer attitudes worsened after the Iran war caused oil and gas prices to spike, accelerating inflation and causing Americans’ inflation-adjusted incomes to decline. Before the pandemic, the index regularly topped 120.
Primary Mortgage Market Survey Index
- 15-Year FRM rates saw a decrease of -0.05%, bringing the current rate to 5.79%.
- 30-Year FRM rates saw a decrease of -0.06%, bringing the current rate to 6.43%.
MND Rate Index
- 30-Year FHA rates saw an increase of 0.07%, with current rate at 6.17%.
- 30-Year VA rates saw an increase of 0.07%, with current rate at 6.19%.
Jobless Claims
Initial Claims were reported to be 215,000 compared to the expected claims of 220,000. The previous week landed at 216,000.
What’s Ahead
A very light week lies ahead, with key economic updates including the U.S. Trade Balance and Consumer Credit reports, along with the Fed’s FOMC Meeting Minutes.