This past week brought good news on the economy’s health, but bad news on the inflationary front; initial jobless claims down, existing home sales up…but inflation may cause the Fed to increase the fed funds rates, and mortgage rates are steadily going up. San Francisco pushes for tenant unions and a bonus infographic about our wet weather.
Waller: If Inflation Doesn’t Cool by Year-End, Fed Could Bring Rate Increases Forward
Federal Reserve governor also supports starting taper of asset purchases soon. Mr. Waller said in a virtual appearance Tuesday that when it comes to moving up what is now a near-zero federal-funds rate target range, “the pace of continued improvement in the labor market will be gradual….” (WSJ)
Mortgage Rates Climb to 3.09%
The rise comes as Treasury yields hit the highest level since May The average 30-year-fixed rate mortgage climbed to 3.09% during the week ending Oct. 21, rising from 3.05% the week prior, according to the latest Freddie Mac PMMS Mortgage Survey. A year ago, the 30-year fixed-rate mortgage averaged 2.80%. Most economists believe they’ll continue to climb. “Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” Sam Khater, Freddie Mac’s chief economist, said in a statement…. (Housing Wire)
Initial jobless claims down 6,000 to 290,000, a post-Covid low
Weekly jobless claims hit another pandemic-era low last week as the elimination of enhanced benefits sent fewer people to the unemployment line. First-time filings for unemployment insurance totaled 290,000 for the week ended Oct. 16, down 6,000 from the previous period, the Labor Department reported Thursday. This was the second week in a row that claims ran below 300,000…. (CNBC)
Existing-Home Sales Increased to 6.29 million in September
Median House Price Growth Decelerated for Fourth Consecutive Month. Existing-home sales rebounded in September after seeing sales wane the previous month, according to the National Association of Realtors®. Each of the four major U.S. regions witnessed increases on a month-over-month basis. From a year-over-year timeframe, one region held steady while the three others each reported a decline in sales. (Calculated Risk)
Economic Side Effects From the Pandemic
Following the Great Financial Crisis, economic growth was below trend, inflation was low, and wage growth was slow. Since the pandemic, economic growth is higher, inflation is finally taking off, and wage growth is accelerating. Each scenario has its unique challenges and trade-offs…. (A Wealth of Common Sense)
SF landlords Face Pressure as City Pushes Union-like Protections for Tenants
The proposed legislation would penalize landlords for harassing or failing to meet with tenant associations. San Francisco has once again thrown its support to tenants over landlords. In a legislative first, renters could get union-like protection from the city as landlords face penalties for failing to acknowledge and meet with them, according to the San Francisco Business Times. Supervisor Aaron Peskin introduced legislation this week that would require landlords to formally acknowledge tenant associations and meet them as many as four times a year….(The Real Deal)
Bonus Infographic:
The science behind atmospheric rivers… (NOAA via Claycord)
