U.S. Job Market Slows, Job Openings Hit 3-Year Low, MBA Reports Mortgage Applications Rise: Portafolio Capital Markets Recap for Week Ending 9/6/2024
U.S. Economy Adds 142,000 Jobs in August, Unemployment Holds at 4.2%
The U.S. economy added 142,000 nonfarm payroll jobs in August, according to the Bureau of Labor Statistics, with notable gains in construction and healthcare. The unemployment rate remained steady at 4.2%, though both joblessness and the number of unemployed individuals (7.1 million) were higher than a year ago. Construction jobs increased by 34,000, while healthcare added 31,000 positions, primarily in ambulatory services and hospitals. Manufacturing employment, however, saw a decline of 24,000 jobs. Average hourly earnings rose by 0.4%, now standing at $35.21. The labor force participation rate held at 62.7%, reflecting little change in employment conditions..
The press release by the Bureau of Labor Statistics (BLS) can be found here.
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U.S. Job Openings Drop to Lowest Level Since 2021 as Labor Market Slackens
In July, U.S. job openings dropped to their lowest level in 3½ years, signaling a cooling labor market, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). The number of available positions fell to 7.67 million, a decline of 237,000 from June, and below economists' expectations of 8.1 million. The ratio of job openings per available worker dropped to less than 1.1, down from its peak of over 2 to 1 in early 2022. Layoffs increased by 202,000 to 1.76 million, while separations jumped by 336,000. Despite the slump in openings, hires rose by 273,000, indicating continued demand for workers. Analysts suggest the data could lead the Federal Reserve to lower interest rates during its September meeting.
The JOLTS press release by the Bureau of Labor Statistics (BLS) can be found here.
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Mortgage Applications Rise by 1.6% as Rates Slightly Decline, MBA Reports
In the week ending August 30, 2024, mortgage applications increased by 1.6%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey. The seasonally adjusted Market Composite Index saw the rise, while the Refinance Index dropped 0.3% but remained 94% higher than the same time last year. Purchase applications rose by 3%, signaling stronger activity, especially in government-backed loans. The average interest rate for 30-year fixed-rate mortgages dipped slightly to 6.43%, while refinance activity hovered near its highest level since 2022. The share of adjustable-rate mortgage (ARM) applications stayed steady at 5.5%. The VA loan share increased, while FHA loans saw a slight decrease.
The full press release by the Mortgage Bankers Association (MBA) can be found here.
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U.S. Housing Supply Rises, but Homes Take Longer to Sell as Prices Moderate
In August, U.S. housing supply saw a 36% year-over-year increase, marking the 10th consecutive month of growth, according to a report by Realtor.com. However, inventory remains 26% below pre-pandemic levels. New listings were down 1%, and homes are staying on the market longer, with the average time rising by seven days to 53 days, the slowest pace in five years. Notably, cities like Tampa, San Diego, and Miami saw inventory surges of over 70%. The increase in supply and slower sales are driving price reductions, with 19% of homes seeing cuts and the median list price falling by 1.3%. Despite these declines, prices are still 36% higher than in August 2019.
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