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Federal Reserve leaves rate unchanged as inflation progress stalls
The Fed is hoping to keep normalizing the size of its balance sheet without creating money market stresses and putting too much upward pressure on interest rates.
Latest jobs report shows hiring slowdown
The employment situation in April came in softer than expected and started the second quarter with signs that the labor market could finally be cooling.
Consumer confidence deteriorates for the third straight month
The rising trend in interest rates before the latest FOMC meeting might also have been a contributing factor to the decline in optimism in recent months.
Productivity slows but remains solid in Q1
With the annual ULCs showing continuous signs of easing, inflation could resume its downward path in the short term if productivity growth remains positive.
Residential construction spending slows across the board in March
Despite weaker total outlays in March, acute housing shortage and recent decline in mortgage rates should continue to provide support to home building activity, and spending on single-family constructions is expected to improve gradually in the second half of 2024.
With a weaker-than-expected jobs report and the Fed hinting that a rate hike is unlikely, mortgage rates ended last week at the lowest levels since early April, and provided hopes that rates may start to creep down as we approach the second half of the year.
SOURCE : California Association of Realtors
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