What’s Ahead For Mortgage Rates This Week – April 4, 2022

What’s Ahead For Mortgage Rates This Week – April 4, 2022Last week’s financial and economic reporting included readings from S&P Case-Shiller Home Price Indices, the  Federal Housing Finance Agency and the federal government reported on construction spending. Reports on public and private-sector jobs growth and the national unemployment rate were also published along with weekly readings on mortgage rates and jobless claims.

S&P Case-Shiller: Home Price Growth Expected to Slow in 2022

National home prices grew by 19.20 percent year-over-year in January as compared to December’s year-over-year pace of 18.90 percent according to the monthly S&P Case-Shiller National Home Price Index. The 20-City Home Price Index revealed no change in the metro areas holding the top three spots for home price growth. Phoenix, Arizona topped the list with year-over-year home price growth of  32.60 percent; Tampa, Florida followed with a year-over-year home price growth of 30.8 percent, and Miami, Florida reported year-over-year home price growth of 28.10 percent. Analysts expect home price growth to slow in 2022 and into 2023. Affordability concerns and rising mortgage rates sidelined first-time and modest-income buyers in high-demand metro areas where multiple offers and cash buyers competed with buyers financing their home purchases.

In separate reporting, the Federal Housing Finance Agency also reported higher home price growth for single-family homes owned by Fannie Mae and Freddie Mac. Year-over-year home prices grew by 18,20 percent in January as compared to December’s home price growth rate of  17.70 percent.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose by 25 basis points to 4.67 percent. Rates for 15-year fixed-rate mortgages averaged 3.83 percent and 20 basis points higher than in the previous week. 5/1 adjustable-rate mortgages averaged 3.50 percent and were 14 basis points higher on average. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims rose last week with 202,000 new claims filed; analysts expected 195,000 new claims and 188,000 new claims were filed in the previous week. Continuing jobless claims fell with 1.31 million ongoing claims filed as compared to 1.34 million continuing jobless claims filed in the previous week.

Construction Spending, Jobs Growth Fall in February

The Commerce Department reported less construction spending in February than in  January. Spending rose by 0.50 percent as compared to the expected reading of 1.0 percent and January’s construction spending growth of 1.60 percent.

The federal government’s Non-Farm Payrolls report indicated that 431,000 public and private-sector jobs were added in March as compared to the expected reading of 490, 000 jobs and February’s reading of 750,000 jobs added. ADP reported 455,000 private-sector jobs added in March as compared to an expected reading of 450,000 jobs added and 486,000 private-sector jobs added in February. The national unemployment rate dropped from 3.80 percent to 3.60 percent in March.

What’s Ahead

This week’s scheduled economic reporting includes the release of the Federal Open Market Committee’s minutes from its last meeting and weekly readings on mortgage rates and jobless claims.

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Case-Shiller Home Price Indices: Home Prices Grow at a Near-Record Pace

Case-Shiller Home Price Indices: Home Prices Grow at a Near-Record PaceU.S home prices grew at a near-record pace in January according to the National S&P Case-Shiller Home Price Index; year-over-year home prices rose by 19.20 percent in January as compared to December’s reading of 18.90 percent. Home prices rose 1.80 percent on a month-to-month basis from December to January.

While home prices continued to grow at near-record rates, home price growth slowed in some areas during  December but picked up in January. Craig M. Lazzara, managing director at S&P Dow Jones Indices, said: “Last fall we observed that home prices, although continuing to rise sharply, had begun to decelerate. Even that modest deceleration was on pause in January.”

The top three cities for home price growth held their places in January. Phoenix, Arizona had the highest pace of home price growth with a year-over-year gain of 32.60 percent; Tampa, Florida reported a year-over-year gain of 30.80 percent. Miami, Florida held third place with a year-over-year home price growth rate 0f 28.10 percent.

All 20 cities tracked by Case-Shiller reported record gains in year-over-year home prices while 16 of 20 cities included in the 20-City Index reported higher home price gains in January than in December.

FHFA House Price Report Shows Strong Growth

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, reported that home prices rose by 18.20 percent year-over-year in January. December’s year-over-year growth pace was 17.70 percent for homes owned by Fannie Mae and Freddie Mac.  Home prices rose fastest in the Mountain region, which includes Arizona, Colorado, Idaho, Montana, Nevada, New Mexico Utah, and Wyoming. Year-over-year home prices rose by 23 percent or more in the Mountain region.

Will Doerner, a supervisory economist at FHFA, said: “So far, the mortgage rate growth has not dampened upward price pressure from intense buyer demand and limited supply.” Low inventories of available homes continue to drive demand for homes, but some economists expect the pace of home sales to drop by as much as 25 percent in response to rising mortgage rates. Analysts expect that low inventories of available homes will sustain rising home prices. Homebuyers can expect to compete for available homes as buyers rush to lock in lower mortgage rates; cash buyers and bidding wars can cause home prices to rise above market value in high-demand markets.

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What’s Ahead For Mortgage Rates This Week – March 28, 2022

What's Ahead For Mortgage Rates This Week - March 28, 2022Last week’s economic reporting included a speech and press conference by Federal Reserve chair Jerome Powell, data on pending home sales and sales of new homes, and the University of Michigan’s monthly reading on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published.

Fed Chair: Rate Hikes Above 0.25 Percent May be Needed to Ease Inflation

Federal Reserve chair Jerome Powell said that the Fed is willing to move beyond its recent 0.25 percent rate hike to control inflation.  In a speech made to the National Business Association for Business Economics, Mr.Powell said, “We will take necessary steps to ensure a return to price stability. In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at  a meeting or meetings, we will do so.” Mr. Powell clarified that the Fed is willing to raise rates as needed to control inflation. He predicted that the Fed would raise its key interest rate to 1.90 percent this year and 2,8 percent in 2023.

Mortgage Rates Rise Again as Sales of New Homes Fall

Freddie Mac reported higher mortgage rates last week as rates for 30-year fixed-rate mortgages rose 26 basis points and averaged 4.42 percent; the average rate for 15-year fixed-rate mortgages rose by 24 basis points to 3.63 percent. The average rate for 5/1 adjustable rate mortgages rose by 17 basis points to 3.36 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

The combined impact of rising home prices and mortgage rates caused sales of new homes to fall in February.  772,000 new homes were sold on a seasonally-adjusted annual basis as compared to expectations of 805,000 sales and January’s reading of 788,000 new homes sold.

Initial jobless claims fell last week to 187,000 claims filed as compared to expectations of 210,000 new claims filed and the prior week’s reading of 215,000 first-time jobless claims filed. Continuing jobless claims fell to 1.35 million filings as compared to the previous week’s reading of 1.42 million jobless claims filed on a seasonally-adjusted annual basis.  

The University of Michigan’s final Consumer Sentiment Index for March showed consumer skepticism about current economic conditions. The March index reading was 59.4 as compared to the expected reading of 59.7, which matched February’s index reading for consumer sentiment.

What’s Ahead

This week’s scheduled economic reporting includes readings from Case-Shiller Home Price Indices, The Federal Housing Finance Administration’s House Price Index, and data on public and private-sector jobs growth. The national unemployment rate will be published along with weekly readings on mortgage rates and jobless claims.

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What’s Ahead For Mortgage Rates This Week – March 21, 2022

What's Ahead For Mortgage Rates This Week - March 21, 2022Last week’s economic reporting included readings on housing markets from the National Association of Home Builders, sales of previously-owned homes, and government reports on housing starts and building permits issued. Weekly readings on mortgage rates and jobless claims were also released.

NAHB: Builder Confidence Slips Two Points in March

The National Association of Home Builders reported that home builder confidence in housing market conditions slipped two points to an index reading of 79. Analysts expected a reading of 80 based on February’s reading of 81. Robert Dietz, the NAHB’s chief economist, said: “While low existing inventory and favorable demographics are supporting demand, the impact of elevated inflation and higher interest rates suggest caution for the second half of 2022.”  Builders also expressed ongoing concerns over rising materials costs and labor shortages.

While springtime traditionally opens peak home-buying season, industry analysts cautioned that this year’s homebuying season may fall far short of its usual performance as concerns over the pandemic and rapidly rising inflation persist. Home prices increased significantly in 2021 and affordability issues challenged prospective first-time and moderate-income home buyers. Demand for homes may ease as fewer buyers can afford rising home prices, mortgage rates, and qualify for financing due to tighter mortgage lending standards.

Mortgage Rates Rise After Fed Raises Key Interest Rate for First Time in Four Years

In its customary statement made after the meeting of Federal Reserve policymakers, the Fed announced its first increase in the federal interest rate range in four years. The rate range increased from 0.00-0.25 percent to 0.25-0.50 percent. Fed leaders announced that a strategy of measured interest rate increases is planned to ease rapid inflation.

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose 31 basis points to 4.16 percent. The average rate for 15-year fixed-rate mortgages rose 30 basis points to an average of 3.39 percent. Rates for 5/1 adjustable-rate mortgages averaged3.19 percent and were 22 basis points higher. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell to 214,000 claims filed as compared to the previous week’s reading of 229,000 first-time jobless claims filed. Analysts expected a reading of 220,000 new jobless claims filed. Continuing jobless claims were also lower with 1.42 million ongoing jobless claims filed; 1.49 million continuing claims were filed in the previous week.

The federal government reported a seasonally-adjusted annual pace of 1.77 million housing starts in February; analysts estimated 1.70 million starts as compared to January’s reading of 1.66 million housing starts. Fewer building permits were issued in February with a seasonally-adjusted annual pace of 1.86 million permits issued as compared to January’s year-over-year pace of 1.90 million building permits issued. Analysts expected a seasonally-adjusted annual pace of 1.85 million building permits issued.  

What’s Ahead

This week’s scheduled economic reporting includes readings on new home sales and pending home sales; the University of Michigan will release its final consumer sentiment index for March. Weekly readings on mortgage rates and jobless claims will also be published. 

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What’s Ahead For Mortgage Rates This Week – March 14, 2022

What's Ahead For Mortgage Rates This Week - March 14, 2022Last week’s economic reporting included month-to-month and year-over-year readings on inflation. The University of Michigan released its monthly consumer sentiment index; weekly readings on mortgage rates and jobless claims were also published.

Inflation Reports: No Good News for Consumers

The war in Ukraine increased inflation rates in the U.S in February as costs for fuel, food and housing continued to rise. The federal government reported that month-to-month inflation rose by 0.80 percent in February; analysts expected a month-to-month increase of 0.70 percent as compared to January’s reading of 0.60 percent.

Core inflation, which excludes volatile food and energy sectors, rose by 0.50 percent in February and matched expectations. January’s month-to-month rate for core inflation was 0.60 percent and was the highest reading for month-to-month core inflation since 1981. Analysts reported that high inflation was impacting low and moderate-income Americans more as rapidly rising costs for housing, food, and fuel rose faster than wages for most.

Year-over-year inflation rose by 7.90 percent in February as compared to January’s reading of 7.50 percent. Core inflation rose at a year-over-year pace of 6.40 percent in February and surpassed January’s core reading of 6.00 percent. Core inflation readings exclude volatile food and fuel sectors.

Mortgage Rates, Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages increased by nine basis points to 3.85 percent. Rates for 15-year fixed-rate mortgages averaged 3.09 percent and were eight basis points higher than in the previous week. The average rate for 5/1 adjustable rate mortgages was six basis points higher at 2.97 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30  percent for 5/1 adjustable rate mortgages.

Last week’s initial jobless claims rose to 217,000 new claims filed as compared to 216,000 first-time claims filed in the previous week. Analysts expected initial jobless claims filed last week to match the previous week’s reading of 216,000 first-time claims filed.  Continuing jobless claims rose to 1.49 million claims filed as compared to the prior week’s reading of 1.47 million ongoing claims filed.

The University of Michigan’s Consumer Sentiment Survey reflected consumer concerns over inflation and the potential economic impacts of the Ukraine war. The March index reading of 59.7 was lower than February’s reading of 62.8 and the expected index reading of 62.0. Index readings over 50 indicate that most consumers are confident about economic conditions.

What’s Ahead

This week’s scheduled economic news includes readings on U.S housing markets, the Federal Reserve’s statement on interest rates, and the Federal Reserve chairman’s press conference. Data on building permits, housing starts, and sales of previously-owned homes will also be released. Weekly reports on mortgage rates and jobless claims will also be published.

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What’s Ahead For Mortgage Rates This Week – March 7, 2022

What's Ahead For Mortgage Rates This Week - March 7, 2022Last week’s economic reporting included readings on construction spending, written testimony from Fed chair Jerome Powell and data on public and private sector jobs and national unemployment. Weekly readings on mortgage rates and jobless claims were also released.

Fed Chair Hints at Rate Hikes in Written Testimony

Federal Reserve Chairman Jerome Powell indicated that consistent rate hikes of the Fed’s target interest rate range will likely occur throughout this year, but he said that the Fed would proceed carefully. Analysts interpreted Mr. Powell’s remarks to mean that he would limit each rate hike to 0.25 percent but could be higher depending on the pace of inflation.

Inflation rose by 7.50 percent year-over-year in January; this was the highest inflation rate since 1982. Chairman Powell said the Fed wanted to prevent persistent high inflation while promoting sustainable economic expansion and a strong labor market. The war in Ukraine could lead to faster inflation as Russia is the world’s second-largest producer of oil.

Mortgage Rates, Fall, Jobless Claims Mixed

Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 3.76 percent. Rates for 15-year fixed-rate mortgages were also 13 basis points lower at 3.01 percent and rates for 5/1 adjustable-rate mortgages averaged 2.91 percent and were seven basis points lower on average. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell last week with 215,000 new claims filed as compared to 233,000 jobless claims filed in the previous week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.47 million continuing claims filed.

Jobs Data Shows Mixed Results

Public and private sector jobs data and the national unemployment rate reflected a strong labor market. The government’s Non-Farm Payrolls report tracks public and private-sector job growth and reported 678,000 jobs were added in February as compared to expectations of 440,000 jobs added and January’s reading of 481,000 jobs added.

The ADP jobs report includes only private-sector jobs data; 475,000 jobs were added in February as compared to predictions of 400,000 jobs added and January’s reading of 509,000 private-sector jobs added. The national unemployment rate dropped to 3.80 percent; analysts expected an unemployment rate of 3.90 percent and January’s jobless rate of 4.00 percent.

What’s Ahead

This week’s scheduled economic reporting includes readings on job openings and quits, inflation, and the University of Michigan’s preliminary reading on consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.

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What’s Ahead For Mortgage Rates This Week – February 28, 2022

What’s Ahead For Mortgage Rates This Week – February 28, 2022Last week’s economic reporting included readings on home prices from S&P Case-Shiller and the Federal Housing Finance Agency; data on pending home sales and sales of new homes were also released. The University of Michigan released its final February reading on consumer sentiment and weekly reports on average mortgage rates and jobless claims were also published.

S&P Case-Shiller Home Price Indices: Home Price Growth Expected to Slow in 2022

December readings from S&P Case Shiller suggested a slowing pace of home price growth in 2022 but analysts said that home prices are not expected to decrease. Case-Shiller’s National Home Price Index showed an 18.80 percent increase in home prices year-over-year. S&P Case-Shiller’s 20-City Home Price Index reported that Phoenix, Arizona held on to its first-place standing for home price growth with home prices increasing by 32.50 percent year-over-year. Tampa, Florida home prices rose by 29.40 percent, and the Miami, Florida metro area reported home price growth of 27.30 percent. Analysts expect that home prices will continue to rise, but not at the extreme pace seen in 2021.

The Federal Housing Finance Agency, which oversees properties owned and financed by Fannie Mae and Freddie Mac, reported year-over-year home price growth of 17.60 percent as of December. Analysts said that January’s bad weather, rising mortgage rates, and continued impacts of  Covid-19 and its variants decreased sales of new homes by 9.30 percent in January. The National Association of Realtors® reported supplies of available homes were in the normal range with a 6.1-month supply of homes available. A six-month supply of available homes is considered an average inventory.

Mortgage Rates, Jobless Claims

Freddie Mac reported lower average rates for fixed-rate mortgages as the average rate for 30-year fixed-rate mortgages fell by three basis points to 3.89 percent; rates for 15-year fixed-rate mortgages dropped one basis point to an average of 3.14 percent. Rates for 5/1 adjustable-rate mortgages were unchanged at 2.98 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable-rate mortgages averaged 0.30 percent.

Initial jobless claims were lower last week with 232,000 new claims filed as compared to the prior week’s reading of 249,000 initial claims filed. Analysts expected 235,000 new jobless claims to be filed last week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.59 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reading includes data on construction spending, public and private sector jobs, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims will also be released.

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S&P Case-Shiller Indices: December Home Price Growth Hits Record High

S&P Case-Shiller Indices: December Home Price Growth Hits Record HighWhile U.S. home prices grew at record speed in December, rising mortgage rates threatened rapid price appreciation as buyers were sidelined by affordability concerns. S&P Case-Shiller’s National Home Price Index reported 18.80 percent year-over-year home price growth in December.

The 20-City Home Price Index posted a year-over-year gain of 18.60 percent as compared to November’s year-over-year home price gain of 18.30 percent. Home prices rose by 1.50 percent from November to December 2020. Phoenix, Arizona held on to first place in the 20-City Index with year-over-year home price growth of 32.50 percent; Tampa, Florida held second place with 29.40 percent year-over-year home price growth. The Miami, Florida metro area held third place with year-over-year home price growth of 27.30 percent.

Rising Mortgage Rates Impact Affordability for Prospective Homebuyers

Analysts predicted slowing home price growth as mortgage rates rise and affordability issues impact prospective home buyers. Danielle Hale, a chief economist at Realtor.com, said: “Home prices continued to surpass expectations in December, but a marked change may be ahead for growth as rising mortgage rates eat into buyers’ purchasing power.”

Ms. Hale described a trend that could signal slower home price growth. “While typical asking prices continue to accelerate, the pace of median sales price growth has slowed, signaling a potential gap between what buyers are willing and able to pay and what sellers are hoping to receive.”

The quarterly report issued by the Federal Housing Finance Agency supported trends evident in the S&P Case-Shiller Home Price Indices. Prices for homes owned or financed by Fannie Mae and Freddie Mac rose by 17.50 percent year-over-year in December. The FHFA reported the strongest home price growth in Arizona, Utah, and Idaho during the fourth quarter of 2021.

The strongest state housing markets for  FHFA were Arizona, Utah, and Idaho, while the weakest housing markets were in Washington, DC, Louisiana, and North Dakota. Homebuyers continued to seek homes in less congested suburban and rural areas due to rising home prices. This trend originally started as Covid-19 outbreaks and work-from-home opportunities prompted city dwellers to relocate to areas less affected by the virus.

Analysts recognized that rising home prices sidelined moderate-income and first-time homebuyers, but did not expect home prices to fall in the coming months.

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What’s Ahead For Mortgage Rates This Week – February 22, 2022

What's Ahead For Mortgage Rates This Week - February 22, 2022

Last week’s economic reporting included readings from the National Association of Home Builders on housing markets, reports on sales of previously owned homes, housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims were also released.

NAHB: Rising Materials Costs, Supply Chain Problems Weigh on Builders

The National Association of Home Builders’ February housing market index reading was 82 and one point lower than in January. This was the second consecutive month that builder confidence dropped by one point. Homebuilder confidence in housing market conditions remained relatively high as any index reading over 50 indicates that most builders are confident about market conditions.

Short supplies of available homes and high demand combined to hold builder confidence steady, but growing concerns over rising materials costs, delivery delays, and labor shortages put downward pressure on builder confidence. NAHB chair Jerry Konter wrote, “Many builders are waiting months to receive cabinets, garage doors, countertops, and appliances. These delivery delays are raising construction costs and pricing prospective buyers out of the market.” Rising mortgage rates coupled with rising home prices were regarded by homebuilders as threats to affordability for moderate-income and first-time home buyers. 

Building Permits Increase as Housing Starts Decline

The Commerce Department reported that building permits issued exceeded expectations and the prior month’s reading. 1.90 million building permits were issued on a seasonally-adjusted annual basis in January as compared to the expected reading of 1.75 million permits issued and December’s reading of 1.89 million permits issued.

January housing starts decreased to 1.64 million starts on a seasonally-adjusted annual basis from December’s reading of 1.71 million starts and the expected reading of 1.69 million housing starts. Economists expect a slowdown in home building as shortages of available homes, rising home prices, and mortgage rates continue to impact affordability.

January sales of previously-owned homes rose to 6.50 million sales on a seasonally-adjusted annual basis from December’s reading of 6.09 million sales. Analysts predicted a reading of 6.10 million sales.

Mortgage Rates Rise, Jobless Claims Mixed

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose 23 basis points to 3.92 percent. Rates for 15-year fixed-rate mortgages averaged 3.15 percent and were 22 basis points higher. The average rate for 5/1 adjustable rate mortgages rose by 18 basis points to 2.98 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 248,000 claims filed; analysts expected 218,000 new claims to be filed based on 225,000 initial jobless claims filed in the prior week. 1.59 million ongoing jobless claims were filed last week as compared to the previous week’s reading of 1.62 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings from S&P Case-Shiller Home Price Indices, the Federal Housing Finance Agency Home Price Index, data on new home sales, and the University of Michigan’s Consumer Sentiment Index.

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What’s Ahead For Mortgage Rates This Week – February 7, 2022

What's Ahead For Mortgage Rates This Week - February 7, 2022

Last week’s economic reports included readings on construction spending and labor-related reports on jobs and the national unemployment rate. Weekly data on mortgage rates and jobless claims were also published.

Residential Con

The Commerce Department reported overall construction spending rose by 1.30 percent in January, which was the largest increase since April of last year. Private residential construction spending fell by 0.30 percent in January; this was the sixth consecutive month for declining private-sector residential construction spending.

Construction Spending Falls in January

Analysts cited costly building materials, fewer available options for prospective buyers, and higher mortgage rates as factors contributing to less construction spending. Homebuying traditionally slows during the winter months.

Mortgage Rates Little Changed, Jobless Claims Fall

Freddie Mac reported little change in average mortgage rates last week as the rate for 30-year fixed-rate mortgages remained unchanged at 3.55 percent. Rates for 15-year fixed-rate mortgages averaged 2.77 percent and three basis points lower than for the previous week. The average rate for 5/1 adjustable rate mortgages rose one basis point to 2.71 percent on average. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were lower last week with 238,000 first-time claims filed as compared to the prior week’s reading of 261,000 first-time claims filed. Analysts predicted 245,000 new claims would be filed. Continuing jobless claims were also lower with 1.63 million ongoing claims filed as compared to the prior week’s reading of 1.67 million continuing jobless claims filed.

Labor Reports Show Slower Jobs Growth, Unemployment Rate Ticks Up

ADP Payrolls reported 301,000 fewer private-sector jobs open in January as compared to 776,000 private-sector jobs available in December. Analysts expected 200,000 private-sector job openings in January. The government’s Non-Farm Payrolls report showed 467,000 jobs added in January as compared to the expected reading of 150,000 jobs added and December’s reading of 510,000 public and private-sector jobs added. Hiring in December was higher than expected as analysts predicted less hiring due to the ongoing spread of the omicron variant of COVID-19.

The national unemployment rate rose to 4.00 percent in January as compared to December’s reading of 3.90 percent. Analysts predicted national unemployment to hold steady at 3.90 percent.  

What’s Ahead

This week’s scheduled economic reports include readings on inflation and consumer sentiment along with weekly data on mortgage rates and jobless claims. 

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