Thursday's Scoop: Shaky 🌤️

Hey friend - Friday is nearly upon us. We’ve got more scoops on the companies impacting your life before you log off for the weekend.

Insiders, look out for the Weekly Scoop tomorrow.

Here’s what you need to know today to inform your work, spending, and investments…

1. Layoffs are still pretty low.

2. Home prices keep rising amid a supply shortage.

3. Rising mortgage rates have deterred home buyers and stalled the real estate market.

Unemployment Rate: 3.8%
^{Still near the lowest rate in 50+ years}

Layoff rates are still very low. The Labor Department reported initial unemployment claims were only 212,000 last week, the same as the week before, and around average for a healthy economy. Unemployment is historically low, and there are still more than 1.4 available jobs for every unemployed person.

30yr Mortgage Rate: 7.1%
^{That’s up from 6.4% a year ago. (MBA)}
Median Home Price: $393,500
^{That’s up from $375K a year ago. (NAR)}

High mortgage costs have deterred home buyers and stalled the housing market. The National Association of Realtors reported that the number of existing homes sold in March plunged 4.3% from February, 3.7% fewer than a year ago. The average 30-year mortgage rate climbed to 7.1% this month from 6.8% at the start of the year, roughly double what it cost to borrow two years prior.

Home prices keep rising thanks to low supply. High mortgage costs have deterred both buyers and sellers. Homeowners don’t want to give up the low mortgage rates they locked in a few years ago by selling their homes. Mortgage costs have doubled in the past two years. The National Association of Realtors said only 1.1 million homes were available on the market in March, roughly half of the supply in 2019. The median home sale price in March rose to $393,500, nearly 5% more expensive than a year ago. Existing home sales make up most of the US housing market, so prices may not fall until more people decide to sell.

The Market: ⬇️ -0.2%
S&P 500: 5,011.12
1Mo: -3% | 1Yr: +21% | 5Yr: +71%

The market wavered lower on Thursday as positive corporate financial updates couldn't shake investors' pessimism about inflation. The manufacturing sector seems to be making a comeback, which could mean higher product prices.