US labor costs increased in the first quarter by the most in a year as productivity gains slowed, potentially adding to risks inflation will remain elevated.Unit labor costs, or what a business pays employees to produce one unit of output after taking into account changes in productivity, climbed at a 4.7% annual rate. That marked a notable jump after muted gains in the second half of 2023.Productivity, or nonfarm employee output per hour, rose
Home buyers are readjusting their budgets, realizing that borrowing costs are unlikely to move down anytime soon.Mortgage rates continued to climb for the fifth consecutive week, reaching a 7.22% average and a new high for 2024, Freddie Mac reported Thursday. The last time rates rose this high was in November 2023.“Mortgage interest rates are unlikely to move down soon, especially in light of yesterday’s Federal Reserve announcement—the Fed
Strong demand and tight supply continue to push home values higher, even though mortgage rates are now moving higher again.Home prices in February jumped 6.4% year over year, another increase after the prior month’s annual gain of 6%, according to the S&P CoreLogic Case-Shiller national home price index released Tuesday. It was the fastest rate of price growth since November 2022.The 10-city composite rose 8%, up from a 7.4% increase in the
Mortgage rates rose for the third straight week last week, hitting the highest level since November. As a result, mortgage application demand dropped 2.7% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.24% from 7.13%, with points increasing to 0.66 from 0.
New-home sales up nearly 9%, boosted by strength in the NortheastThe numbers: Sales of newly built homes in the U.S. rose in March, posting the biggest increase since December 2022.Home buyers snapped up new homes, pushing sales to the highest level since September 2023, just before the 30-year mortgage rate began its trek to 7%. U.S. new-home sales rose 8.8% to an annual rate of 693,000 in March, from a revised 637,000 in the prior mon
Pending home sales kicked off the spring season with a strong start, but challenges for the homebuying market remain, new NAR data shows.Pending home sales increased in March, reaching their highest level of the year so far, while new-home sales also rose last month. But with mortgage rates now in the 7% range, which could scare home buyers moving forward.The National Association of REALTORS®’ Pending Home Sales Index—a
Real estate is increasingly a tale of two markets — a luxury sector that is booming, and the rest of the market that continues to struggle with higher rates and low inventory.Overall real estate sales fell 4% nationwide in the first quarter, according to Redfin. Yet, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years, according to Redfin.Real estate experts and brokers chalk up the di
The spring housing market has gotten off to a sluggish start due to higher mortgage rates, but new-home sales appear to be a bright spot.Sales of newly built single-family homes jumped nearly 9% in March, reaching their highest level since last fall, the Commerce Department reported Tuesday. With limited inventory options in the resale market, more buyers are eyeing new construction.Home builders are showing more willingness to offer incentives,
More Americans than ever are priced out of the housing market and President Biden has outlined steps his administration is taking to increase development of affordable housing.In the 2024 Economic Report of the President, President Biden said housing shortages and unaffordability have risen dramatically over the past 60 years, primarily affecting low- and middle-income families. The President mostly blames the nation’s affordable housing s
Economists have been scratching their heads over how Americans can continue to prop up the economy with their spending despite high interest rates, persistent inflation, dwindling savings and rising debt.There may be a simple answer: Jobs.Payroll growth has been stunningly strong this year. Most people who land new jobs have been opening their wallets, with many making big lifestyle changes that include buying a new house or car, according
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