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food bank

US Food Insecurity Is Causing Citizens To Go More Hungry Than They Did During The Pandemic 

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A survey released this week by the Federal Reserve Bank of New York revealed that more people in the United States are going hungry now than during the height of the Covid-19 pandemic.

The survey showed that there are higher levels of food insecurity this year than there was during the summer of 2020, when the coronavirus outbreak led to “double-digit unemployment,” according to reports from NPR. 

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The New York Fed periodically asks Americans about whether they have to skip meals, rely on food donations, or receive federal assistance in order to buy groceries. The most recent survey was taken in February, and showed how hunger is a more intense problem now than any other time within the past six years. 

Amy Breitmann runs the Golden Harvest Food Bank in Augusta, Georgia. She recently told NPR how she’s witnessed first-hand the increasing number of families and children that are in need of food this year. 

“We have some distributions where people are sitting in a 2-to-3-mile line the night before the [food] distribution starts. They’re sleeping in their cars.”

The February survey from the New York Fed found that nationwide, 10% of families reported missing meals or having a lack of food in their household. About 16% of respondents relied on food donations. Families that are earning less than $50,000 annually are experiencing food insecurity twice as high as the last report. Nearly 20% of families have been forced to skip meals or went completely without food. 

CEO of the Community Food Bank of Central Alabama, Nicole Williams, also told the publication that they have to move their services to a larger building in order to accommodate the increased demand for food. The food bank serves 12 counties throughout the state. 

“Food insecurity could be your next-door neighbor. When gas costs a little bit more or food costs a little bit more, or they have a repair on their car or a medical bill, that takes away what they might be using to spend on food.”

Experts have been stating that what’s occurring is a part of a “K-shaped economy,” which represents a growing divide between individuals who have proper access to their basic needs and those who don’t. 

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The New York Fed recently wrote that “while many households are doing fine and economic activity overall has been expanding at a solid pace, large segments of the population are facing high levels of economic insecurity and financial strain, and consumer sentiment on the whole has dropped to low levels.”

In 2020, just 4% of households reported missing meals, which also included less than 7% of families that earn less than $50,000 annually. 

During the pandemic, families experienced some relief from their food insecurity thanks to government relief payments and supplemental unemployment benefits. Those same benefits, however, were pandemic-specific and are no longer available. Additionally, within the past six years food prices have increased rapidly. 

The most recent survey from the New York Fed was also conducted before the US war with Iran, which has caused gas prices to increase and the economy to strain further. 

Breitmann posed the question: “If you’re adding on another $100 to your budget a month just to put gas in your car to get to work or drop your kids at school and whatever they need their car for, where is that $100 coming from?”

“Most typically, they’re having to pull it from the grocery budget,” Breitmann said.

The survey also found that there is a growing number of Americans that are relying on Supplemental Nutrition Assistance Program (SNAP) benefits. This is surprising due to the fact that eligibility for the program has become even more strict as of late. 

About 18% of families this year had received SNAP benefits, compared to 10.6% in 2020. Lower-income families had over 38% receiving SNAP benefits, compared to around 22% in 2020. 

jobs

US Lost 105,000 Jobs In October But Added 64,000 In November, Data Shows 

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According to official data, the US labor market grew by more than expected last month, showing recovery is occurring after the damage caused by the federal government shutdown. In October, it was estimated that around 105,000 jobs were lost while 64,000 were added in November.

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Many economists were not convinced that job growth would be as high as it was in November, with many forecasting only 40,000 to be added. 

Last month, however, the unemployment rate continued to grow, hitting a four-year high and hitting 4.6%. The latest data and job numbers are normally released monthly but were delayed due to the government shutdown. Federal government jobs declined by 162,000 in October and 6,000 in November. 

The Bureau of Labor Statistics announced that full October jobs data would not be released and November’s jobs data was delayed due to the 43-day federal government shutdown. These delays have caused a lot of questions regarding the reports accuracy. 

For example, Federal Reserve chair Jerome Powell warned last week that the data from BLS should be “treated with a skeptical eye” while the “hangover left from the shutdown works through the system,” the Guardian reported. 

ADP reported that the US private sector employers got rid of around 32,000 jobs in November after they added 47,000 jobs in October, showing signs of the job market weakening. 

​​The September jobs report, released late in November due to the federal government shutdown, showed that the US added 119,000 jobs, higher than economist predictions. The increase in the unemployment rate from 4.3% to 4.4% in September is the highest level since 2021. 

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Powell himself warned that job figures are likely to be worse than the numbers reported and that Trump’s immigration policies have hurt the US labor supply, keeping the unemployment rate “relatively flat.”

He made these assumptions after the Fed announced it was cutting interest rates by a quarter point, moving towards “risk management” over concerns of a weakening labor market. 

“Labor supply has also come down quite sharply. So, you know, if you had a world where there is just no growth in workers and you really don’t need a lot of jobs to have full employment, some people argue that is what we are looking at.”

“So, there is an over-count in the payroll job numbers, we think, continuing, and it will be corrected. I don’t have an exact month in my head right now. Again, I think forecasters generally understand that. We think it is about 60,000 a month, so 40,000 jobs could be negative 20, but that could be wrong by 10 or 20 in either direction,” said Powell. 

Powell also warned that the accuracy of the jobs report data needs to be questioned due to the government shutdown. 

“We are going to get data, but we are going to have to look at it carefully and with a somewhat skeptical eye by the January meeting,” he said.

The BLS also has been under fire from the Trump administration. Back in August, Trump got rid of BLS commissioner Erika McEntarfer just hours after the July jobs report was published. Trump claimed that the report was “rigged” to make him look bad, which there was no actual evidence to back up.

home

U.S. Home Sales Could Hit Lowest Point in 30 Years as High Mortgage Rates Persist, Forecast Warns

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The housing market may be heading into its quietest year in decades, as climbing mortgage rates continue to squeeze affordability and discourage buyers from entering the market. According to a midyear update from Realtor.com’s economic research team, existing-home sales in 2025 could drop to levels not seen since the mid-1990s.

The updated Realtor.com Housing Forecast, released Wednesday, revises earlier projections issued in December. Among the most notable changes is a bleaker outlook for both home sales and mortgage rates.

Originally, 2025 was expected to bring a modest rebound in existing-home sales compared to the previous year. That hope has been dashed. The updated forecast now anticipates a 1.5% decline in annual sales volume, bringing the total number of transactions down to just 4 million.

If that projection holds, 2025 will mark the third consecutive year of exceptionally low sales volume, comparable to or even below the levels recorded in 1995, when only 3.8 million existing homes changed hands.

For context, both 2023 and 2024 had already registered the slowest sales years in nearly three decades, according to data from the National Association of Realtors (NAR).

“Even with more homes on the market, buyer response has remained muted compared to what we’d expect from similar supply shifts in the past,” says Danielle Hale, chief economist at Realtor.com.

“In regions like the South and West, inventory gains have been more substantial, but affordability constraints continue to weigh on demand. Meanwhile, the Northeast and Midwest remain tighter markets with relatively steadier buyer activity.”

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One of the main culprits behind the stagnating market is persistently high mortgage rates. The 30-year fixed mortgage rate is now expected to average 6.7% for the year, up from the 6.3% average projected just months ago. By year-end, rates are expected to hover around 6.4%, rather than the previously predicted 6.2%.

As of mid-July, rates were averaging 6.75%, according to Freddie Mac, marking a sustained stretch above 6.6% since the start of 2025.

“High mortgage rates are causing home sales to remain stuck at cyclical lows,” said Lawrence Yun, chief economist for the NAR, in a release.

“If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners.”

A Realtor.com chart included in the report illustrates how much more stubborn mortgage rates have been than initially forecasted, dimming hopes for a significant market recovery.

Even as sales falter, a dramatic decline in home prices doesn’t appear to be on the horizon. Instead, Realtor.com economists foresee modest price growth of 2.5% for the year, a downgrade from the 3.7% increase predicted in December, but still growth nonetheless.

Rather than slash their asking prices, many sellers are simply stepping away from the market entirely. Realtor.com recently noted a 47% surge in delistings in May compared to the same month a year earlier, suggesting that homeowners are more inclined to wait than to negotiate in this high-rate climate.

“Sellers still have pretty high expectations of what they can get for their homes,” Joel Berner, a senior economist for Realtor.com, told The New York Times.

“A lot of them are choosing to delist rather than take drastic price cuts.”

In effect, the market is caught in a holding pattern, being too expensive for many buyers to enter, yet too stagnant for prices to decline meaningfully.

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One significant change this year is the increase in active listings, particularly in the South and West. In May, the nationwide number of homes for sale exceeded 1 million for the first time since late 2019, signaling an end to the ultra-tight inventory crunch that defined much of the pandemic era.

However, the hoped-for surge in sales that might accompany this inventory boost has not materialized. High borrowing costs and record home prices continue to deter buyers, many of whom are choosing to wait out the market or forgo homeownership altogether.

Meanwhile, residential construction projections have taken a sharp hit. Single-family housing starts are now expected to fall 3.7% in 2025, totaling just 980,000 units. That’s a far cry from the 13.8% annual gain that economists had forecast at the start of the year, a troubling development for a market still millions of homes short of meeting expected demand.

The continued mismatch between supply, demand, and affordability is having profound ripple effects on American households. The median age for first-time homebuyers has now climbed to a record 38 years old, as more young adults delay or abandon plans to purchase homes. Many are choosing to rent for longer or continue living with family to cope with rising costs.

This shift is reflected in the national homeownership rate, which is expected to dip to 65.2% this year, down from 65.6% in 2024 and 65.9% the year prior.

One modest silver lining lies in the rental market. While homeownership remains elusive for many, rent growth is expected to remain soft in 2025. Median asking rents are projected to edge down 0.1%, following a 0.2% decline last year, providing some relief for renters even as homebuyers continue to struggle.

All told, the 2025 housing landscape appears to be one of frustrating stasis with prices creeping upward, mortgage rates stubbornly high, and both buyers and sellers reluctant to act. Even with some improvements in inventory, the weight of economic pressures, particularly borrowing costs, continues to drag the market into a prolonged lull.

Unless there’s a significant shift in interest rates or wage growth, the U.S. housing market may remain stuck in this state well into next year.

walmart

Trump Tells Walmart to ‘Eat the Tariffs’ After Retailer Warns of Raising Prices

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A growing clash between President Donald Trump and Walmart is drawing national attention as the retail giant warned consumers that they will soon face higher prices due to Trump’s sweeping tariffs.

Walmart has signaled that the cost of goods will begin to rise as a direct consequence of the administration’s trade policies, particularly the mounting tariffs on Chinese imports. Retailers across the country have echoed this concern, cautioning shoppers that inflation at the checkout may soon become unavoidable.

Trump has taken a combative stance in response. Instead of accepting that tariffs often translate into higher prices for American consumers, Trump insists that companies like Walmart should absorb the impact.

In a fiery post on Truth Social over the weekend, Trump directly called out Walmart, urging the retail juggernaut to shoulder the cost rather than pass it along to customers.

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”

The confrontation arrives during an already shaky moment for the U.S. economy. On Monday, financial markets reacted with caution after Moody’s unexpectedly downgraded the U.S. sovereign credit outlook, citing economic uncertainty. Treasury yields spiked as borrowing costs climbed, while Walmart’s stock dipped over 1% amid the escalating tension.

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In a statement, Walmart defended its pricing strategy, saying it was working to keep costs as low as possible “for as long as we can given the reality of small retail margins.”

Behind the scenes, Walmart executives have been more blunt about the challenges. CFO John David Rainey told CNBC last week that price hikes are imminent.

“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb. And so I’m concerned that consumer is going to start seeing higher prices.”

He added that customers can expect the changes to start rolling out this month, with additional increases expected in June.

Walmart CEO Doug McMillon also warned that tariffs targeting imports from Latin American countries like Colombia, Costa Rica, and Peru will likely drive up food prices in particular.

Trump’s public rebuke of Walmart places pressure not just on the Arkansas-based chain but also on other retailers set to report earnings this week, including Home Depot, Lowe’s, Target, and TJX Companies (parent of TJ Maxx and Marshalls). Initially, Walmart’s forecast may have given competitors tacit permission to follow suit with their own price hikes, but Trump’s aggressive messaging could put them in his political crosshairs.

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Despite the rhetoric, Trump’s own Treasury Secretary, Scott Bessent, acknowledged the practical reality. Speaking on NBC’s Meet the Press on Sunday, Bessent said he had spoken directly with McMillon and confirmed Walmart would absorb some of the tariff-related costs “just as they did in ’18, ’19 and ’20.”

Bessent was quick to push back on any notion that the administration was twisting arms. “I just wanted to hear it from him,” he said, “rather than second-, thirdhand from the press.”

He also attempted to downplay inflationary fears, noting that lower gas prices would help cushion the blow to consumers’ wallets. Yet, in a separate CNN appearance, Bessent admitted, “Walmart will be absorbing some of the tariffs; some may get passed on to consumers.”

Recent data from the Bureau of Labor Statistics backs up the notion that companies have, so far, largely resisted passing tariffs on to consumers. April’s figures showed manufacturers and service providers holding the line on price increases, at least temporarily.

That resistance may not last. As the nation’s largest retailer, Walmart’s pricing decisions could open the floodgates. Industry analysts believe that Walmart’s move would give other chains the cover to do the same.

“If Walmart’s coming out — with its scale and its buying power and its focus — and saying prices are going to rise, everyone else is going to have to follow suit,” said Neil Saunders, managing director at GlobalData, a retail research firm. “Walmart is firing the starting gun on a period of price increases.”

As consumers brace for potential sticker shock, the showdown between Trump and Walmart is shaping up to be a defining flashpoint in the broader debate over tariffs, trade policy, and the true cost of “America First.”

plane

America No Longer on the Itinerary: Global Travelers Rethink U.S. Trips Amid Rising Tensions

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International travelers are increasingly reconsidering trips to the United States amid growing concerns over feeling unsafe or unwelcome due to controversial policies and diplomatic tensions linked to the Trump administration. Issues such as border detentions, heightened trade conflicts, and strained relations with longstanding allies are causing many tourists to rethink their support for the U.S. economy.

A proposed new travel ban could restrict citizens from up to 43 countries, including Belarus, Cambodia, and St. Lucia, further complicating international relations and fueling traveler anxieties.

Mallory Henderson, a London-based marketing consultant who regularly visited the U.S. to see family, told The New York Times she canceled her upcoming trip to Boston, citing discomfort with the “unpredictable” environment.

“So many Americans are looking to escape the tense and toxic atmosphere at home. Why would anyone want to visit, especially right now, with all the arbitrary detentions at immigration? It’s a really hostile and scary time, and quite frankly, there’s plenty of other inviting and pleasant places I can go to meet up with my family.”

Even before recent political shifts, the American tourism sector was already struggling to rebound from the pandemic. The strong U.S. dollar and prolonged visa processing had delayed recovery, with international visitor numbers projected not to reach pre-pandemic levels until late 2025 and tourist spending not fully rebounding until 2026, according to the U.S. Travel Association.

Tourism Economics, a research firm, initially predicted a 9 percent growth in travel to the U.S. this year but recently revised forecasts to reflect a 5.1 percent decline in inbound visitors.
This downturn is expected to result in an $18 billion reduction in visitor spending, significantly driven by Canadian travelers responding to newly imposed tariffs. In February, cross-border Canadian visits dropped by 24 percent year-over-year.

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Major airlines like Delta, American, and United have adjusted financial forecasts and reduced flights, especially to and from Canada, reflecting the diminished demand. United CEO Scott Kirby explicitly noted a substantial drop in Canadian passengers.

President of Tourism Economics, Adam Sacks, attributes this decline to perceptions caused by aggressive policy decisions.

“The negative sentiment shift is anticipated to be sustained by an evolving mix of Trump administration factors, including geopolitical friction on trade and national security policies, charged rhetoric and adversarial posturing. High-visibility border security and immigration policies and enforcement actions are also expected to discourage visits.”

Several nations, including the U.K., Canada, and Germany, have updated travel advisories cautioning citizens that visa waivers do not guarantee smooth entry into the U.S. following several highly publicized border detentions involving foreign nationals. For example, France recently protested after a French scientist was denied entry, allegedly due to his personal opinions about American politics discovered during a phone inspection—an assertion the U.S. denied.

While Europe has not seen cancellations at Canada’s scale, many travelers are reconsidering future trips to the United States. European Travel Agents’ Secretary General Eric Dresin warned that continued policy turbulence might lead to greater disruption in the European tourism market. In February, arrivals from Western Europe dipped by 1 percent compared to a 14 percent increase the previous year.

Tourists like Christoph Bartel, a German citizen who lives in Norway, are choosing alternate destinations after U.S. policy shifts. Bartel had initially planned to visit Arizona in the summer to tour national parks but canceled his plans when Trump fired park employees and reversed environmental regulations.

“It does not feel right to support the American economy when the president is causing so much sabotage. It is disappointing to abandon a special trip we planned for months, but we will go to Canada or Mexico instead.”

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British travelers, traditionally the largest European visitor group after Canada and Mexico, are also becoming cautious. Alan Wilson of Bon Voyage Travel & Tours noted a 5 percent drop in bookings for U.S. trips this year, driven partly by increased hotel costs and frustration with tipping culture.

“The British market absolutely hates the 20 percent tipping culture and how America always has its hand held out for the next gratuity. They would rather pay the money upfront.”

Small businesses reliant on tourism in popular destinations like New York and California feel the pinch. Luke Miller of Real New York Tours reported devastating cancellations, especially from Canadian visitors, with a bleak outlook for future bookings. If business doesn’t rebound, Miller fears layoffs will be inevitable. “I just had 20 busloads of seniors cancel their upcoming tours. That’s thousands of dollars of losses for my small business,” Mr. Miller said.

In response, state tourism agencies are stepping up marketing to reassure travelers. Visit California, the state’s tourism agency, slightly lowered its 2025 spending forecast, citing reduced international arrivals and recent wildfires.

“The good news is, thanks to California’s strong brand on the global stage, international visitors continue to show a strong affinity for the Golden State,” Caroline Beteta, the agency’s president, said in a statement.

New York City Tourism+ Conventions is emphasizing affordability and attractions beyond Manhattan, confident that the city will ultimately achieve its recovery goals despite present challenges.

“This is an excellent opportunity to highlight the other boroughs and parts of New York City outside of Manhattan that are just as vibrant and have amazing, award-winning culinary, arts and cultural experiences.”

Still, business owners like Miller remain concerned. “The reality is that we are being hit the hardest and might not survive,” he said.

interest

Mortgage Rates Hit a 20-Year High of 6.92%

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According to Freddie Mac, mortgage rates reached a 20-year high last week due to rising interest rates, now at a whopping 6.92%. The Federal Reserve is continuing its aggressive monetary policy to squash surging inflation, sending shockwaves throughout the housing market.

The federal funds rate is projected to reach 4.4% by the end of 2022. Russia’s invasion of Ukraine, supply chain issues and record low interest rates during the pandemic led to unprecedented inflation, prompting the Fed’s policy initiative.

While the Fed continues to wrangle with inflation, the housing market is especially feeling the pinch of higher interest rates. The S&P 500 and the New York Stock Exchange also fell 20% from this time last year as a result of these rate hikes. The declines have continued for several weeks.

Despite the Fed’s efforts, the consumer price index has not significantly budged. The index rose to 8.2% in September, far from the Fed’s eventual target of 2%.

For the last 15 years, mortgage rates in the U.S. have been relatively low. Thirty-year fixed mortgage rates were notably low during the previous two years, hovering between 2.5% and 3.5% between 2020 and early 2022.

However, mortgage rates spiked in recent weeks. As of Oct. 13, the thirty-year mortgage rate is at a two-decade high of 6.92%. The fifteen-year rate is at 6.09%.

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Freddie Mac’s chief economist Sam Khater released a statement regarding the rates.

“Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April 2002. We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market.”

The Fed has been clear about its plan to continue increasing the federal funds rate until prices begin to level out. Mortgage rates tend to rise alongside the federal funds rate.

In September, the chairman of the Fed, Jerome Powell, said there is no way to avoid the rising unemployment and slowing growth that will follow the Fed’s current monetary policy. The consequences of out-of-control interest rates may be even more disastrous for the economy than necessary rising interest rates. The Fed estimates unemployment will climb to 4.4% in 2023 and 2024, up from the current rate of 3.5%.

“We have to get inflation behind us. I wish there were a painless way to do that. There isn’t.”

Some experts are taken aback by how quickly mortgage rates are rising. Economist Matthew Speakman from Zillow told ABC News that “few could have predicted exactly how far and how fast they have risen.”

“There’s not a lot of incentive for rates to come down dramatically in the near-term, but that doesn’t necessarily mean they’re going to keep running away at this pace.”

The relationship between homebuyer behavior and rising mortgage rates is complicated. In general, higher mortgage rates reduce demand, which drives down the prices of homes. Real estate prices are falling, but not as rapidly as expected, in the face of the skyrocketing mortgage rates.

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Daryl Fairweather, an economist at Redfin, spoke on the complexity of the current housing market.

“It’s like a standoff between buyers and sellers. Buyers can’t afford higher prices, and sellers don’t want to sell for lower prices.”

Recession worries, rising inflation and high-interest rates have made things appear bleak, but many experts believe mortgage rates will not continue to skyrocket. Lawrence Yun, the chief economist at the National Association of Realtors, predicts that rates will hover around the resistance point of 7%.

“We don’t want to see a bursting out of that second resistance and going up, because you’re talking about 8.5% mortgage rates, something that we clearly do not want to see. The 7% interest rate could be the new normal.”

In July, Yun released a statement predicting that higher mortgage rates will persist as long as the high inflation rate persists.

“If consumer price inflation continues to rise, then mortgage rates will move higher. Rates will stabilize only when signs of peak inflation appear. If inflation is contained, then mortgage rates may even decline somewhat.”

house

US Home Prices Decline at Fastest Pace Since 2008 Financial Crisis

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We are in the middle of the most significant two-month drop in home prices since shortly after the collapse of the Lehman Brothers in September 2008. Prices have been declining at the fastest pace since the Great Recession, prompting some experts to believe we are entering a housing market correction.

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house

Homebuilder Sentiment Falls for Ninth Consecutive Month

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U.S. homebuilder confidence in the housing market dropped to its lowest level since the beginning of the COVID-19 pandemic. Experts believe the high inflation rate and rising borrowing costs are contributing to first-time homebuyers’ hesitancy to purchase new single-family homes.

The National Association of Home Builders/ Wells Fargo Housing Market Index, which measures the activity of the single-family housing market, fell to 46 in September after declining for the ninth consecutive month. The last nine months are the most prolonged and persistent decline in builder sentiment in the last four decades.

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Experts say a Housing Market Index above 50 shows a healthy market with net positive growth. In November 2020, the index rose to 76, the highest in 35 years, due to the Federal Reserve pushing the federal funds rate to nearly zero. After the pandemic’s dampening effect, the Fed’s loosening of the federal funds rate was meant to stimulate the economy back to health.

Recently The Federal Reserve has been raising interest rates by adopting an aggressive monetary policy to bring the inflation rate back down to sustainable levels. A lack of supply due to construction costs fueled by those interest rates has slowed down building into a housing recession.

NAHB chairman Jerry Konter said builders are responding to a falling market by using incentives to bolster sales, “including mortgage rate buydowns, free amenities and price reductions.”

Pantheon Macroeconomics analyst Ian Shepherdson believes that builder sentiment will continue to decline.

 “This probably will not mark the bottom of the cycle, given the latest surge in mortgage rates above 6%. The rate of fall of mortgage applications slowed over the summer, but the early September numbers point to a renewed sharp decline.”

Mortgage rates have skyrocketed to those seen during the 2008 housing crisis, with interest rates on 30-year fixed loans hitting 6%. According to data released from the Mortgage Bankers Association, mortgage rates have already risen 4% so far this year.

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This increase in mortgage rates would add $389,000 in interest payments to the life of a $500,000 single-family home purchase. The association’s data also showed that the seasonally adjusted MBA Purchase Index rose only 0.2%. New applications for mortgages went down  1.2%.

Though builder sentiment often signals the eventual direction of mortgage applications, NAHB CEO Jerry Howard told Fox Business that people should have confidence that the housing market will pick back up again.

“I think you’re seeing a weakening in virtually every market, but those that were stronger are weakening less. I guess the most important thing that investors and people need to remember is that Americans still want to own their homes and that, as soon as the conditions turn a little more favorable, housing will pick up. That will pick up the whole economy.”

labor

US Economy Adds 372,000 Jobs In June, Exceeding Expectations 

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According to the monthly jobs report from the Bureau of Labor Statistics (BLS), the US economy added 372,000 new jobs in June, exceeding expectations and providing citizens with a surge in hiring. 

The unemployment rate remained around 3.6% as well. In May, 384,000 new jobs were added, so while June’s numbers were slightly lower, it still exceeded economist’s expectations. Economists initially were expecting around 272,700 jobs to be added in June. 

BLS data shows that the US job market is just 524,000 jobs away from pre-pandemic levels where unemployment rates were reaching record lows. 

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Professional business services, leisure/hospitality sectors, and the healthcare industry saw the biggest gains in jobs, with additional increases in food services and warehouse/storage positions. 

The job market in general has been a major force in keeping the US economy strong. The latest Job Openings and Labor Turnover Survey data released “showed there were 11.3 million available jobs in May, or 1.9 positions for every job seeker, along with historically low levels of layoffs.”

America is currently experiencing the highest inflation rates in 40 years, however, wages continue to rise. Average hourly wages were up by 5.1% within the past year, and the labor participation rate is at a steady 62.2%, just 1.2% less than pre-pandemic levels. 

“The job market is still plowing forward even in the face of increasing headwinds and recession fears. Even if the economy is slowing, the labor market remains a point of strength for the recovery. Strong employer demand is supporting solid but slowing job gains,”  Daniel Zhao, Glassdoor senior economist, said in a statement.

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“The employment report does nothing to dissuade Federal Reserve officials from sticking to their interest rate raising plans, looking to send inflation down, and closer to their 2% target. The next key reading for the Fed is the Consumer Price Index due in the days ahead,” ” said Mark Hamrick, senior economic analyst for Bankrate, in a statement. “

An increase in Covid cases in May prevented a lot of Americans from re-entering the job market last month, making the increase even more unexpected. 

Due to the increase in Covid cases in May, around 610,000 people were unable to look for work in June, up from 455,000 in the previous month. This is the first increase in this sector of data since January when the Omicron variant first appeared in the US.

The most recent Household Pulse Survey from the Census Bureau also showed that “the pandemic took more of a toll on Americans’ ability to work in June. Nearly 3.7 million people said they were not working because they were sick with Covid symptoms or were caring for someone who was sick, according to the survey, taken in the first two weeks of June.”