US labour market on solid footing; rising mortgages pressuring housing sector
Businesstimes News·- The US labor market shows fundamental stability with initial jobless claims dropping to 196,000 in the week ending September 12, allowing the Federal Reserve to focus on combating inflation. - Rising inflation and surging mortgage rates, with the 30-year fixed rate reaching 6.95 %, are exerting significant pressure on the housing sector and dampening single-family builder confidence. - Single-family housing permits declined by 1.8 % to an annualized rate of 878,000 units in August, reflecting ongoing supply and cost challenges in the real estate market.Redfin: US pending home sales fall 3.5% to nearly three-year low
PUBT·- Redfin reported that US pending home sales dropped 3.5% month-over-month to 299,126 units, reaching a nearly three-year low. - The median US home sale price rose 2% year-over-year to $397,633, while the 30-year fixed mortgage rate increased to 7.24% on September 16. - Mortgage purchase applications fell 1% month-over-month and 19% year-over-year, reflecting weakened housing demand and high inventory levels.Dow Tumbles Over 250 Points; NY Empire State Manufacturing Index Falls In September
benzinga_article·- U.S. stocks traded lower on Tuesday, with the Dow Jones index falling over 250 points to 52,135.49 and the S&P 500 and NASDAQ also declining. - The New York Fed’s Empire State Manufacturing Index dropped 13 points to 7.6 in September, missing market estimates of 14.75. - Individual stock movements included significant gains for Veea Inc and My Size Inc, alongside notable losses for Huachen AI Parking Mgmt Tech Hldg Co Ltd.The 30-year mortgage rate just crossed 7% for the first time in over a year
MarketWatch·- The 30 - year fixed mortgage rate rose by 18 basis points over 2 days, exceeding 7% for the first time since May 2025. - Driven by investor concerns over inflation, government debt, and geopolitical tensions in Iran, the surging rates have pushed 10 - year Treasury yields to their highest level in over a year. - This increase in borrowing costs is expected to further suppress the real estate market, leading to declining home sales and weak purchase demand in the short term.