Economic Indicators
Single-family Housing Starts
Housing starts fell by 7.7% compared to the level a year ago, signaling a weakening sentiment in home construction.
Housing Inventory
Housing inventory was slightly higher y-o-y, but has declined 2.3% m-o-m, and is expected to remain constrained as homeowners are reluctant to sell and sign-on to higher mortgage rates.
Mortgage Rate
Current mortgage rates are around 7% and have slowed down the housing market considerably, impacting both housing demand and supply.
Inflation
Inflation remains persistently high; mainly driven by the high cost of food and energy.
Unemployment Rate
The U.S. labor market remains strong despite five rate hikes by the Fed this year, making it certain that more rate hikes are coming.
Hourly Earnings
Average hourly earnings increased just 5% from last year, while inflation was at 8.3%, indicating that real wages fell.
