Happy Friday! Brian Manning here with the weekly update. Let’s get right to it. Quiet day Monday, because it’s 4 July. Markets were closed. I hope everybody had an amazing holiday weekend.
Tuesday this week, we got some feedback from the Atlanta Fed on their anticipation for Q2 GDP, and they had to revise it, and they now anticipate that Q2 GDP would be down 2.1%.
Wednesday this week, we get feedback from CoreLogic. So, this gives us feedback on the housing market for the month of May. Home appreciation was up 20.2% on a year-over-year basis for the month of May, still seeing really strong housing numbers on a month-over-month basis and a year-over-year basis.
Thursday this week, we got the Fed minutes. So this was minutes from their last meeting, and it really showed that all Fed voting members were on board for the rate hikes. It’s still unbelievable to me, you know. It really wasn’t that long ago, several months ago, we even had our Fed president Jerome Powell saying, oh, you know, inflation is transitory. Inflation is not a problem. And now, they just have a complete turnaround. And it’s almost like a five-alarm fire at the house right now where they’re just trying to go through and hike rates and now, they’re certainly all on board saying that inflation is an issue. So, that was clearly identified in the Fed minutes.
And then today… Oh, let me back up. Usually, the first Wednesday of every month, we would get the ADP report. So… first week of every month, we get employment reports. First Wednesday, we always get ADP. ADP is the largest provider of private payrolls in the US. ADP came out this week and they said, hey, we’re not gonna issue an employment report. We’re actually going to be on hold until August 31 because we need to revamp our reporting process. So, we didn’t get ADP this week, which is interesting.
So, the only report we got was today. That’s the BLS. It’s the Bureau of Labor Statistics. Anticipation was that there was 268,000 jobs created in the month of June, but we actually got 3720 jobs were created. So, a really strong employment report, and also unemployment remained flat. What’s interesting about this report, though, is that this now really gives the Federal Reserve the green light for their upcoming meetings to hike rates by 0.75 of a percent or 75 basis points. The reason why is because the Federal Reserve is trying to calm down the economy. And as part of the calming down the economy, they want to calm down borrowing spending from us as consumers and then also employment.
So, this really does give them the green light for a three-quarter percent rate hike. We’ll have to see how that goes and how the market digests the information. Of course, always when it comes out immediately, that always has a little bit of a negative impact. Mortgage rates are slightly higher today based on the strength of this and all the markets digesting what the Federal Reserve basically has a green light to do with their next Fed rate hike.
I’m around all weekend. If you have any questions, let me know. If you want to go through our strategic buyer consultation, give me a call, call me on my cell phone, text me. Happy Friday! Have a great day!