Jobs Report Shows Weakness Despite Headline Number; Housing Market Still Slowed by High Rates
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The December jobs report showed weakness despite the headline number. The household survey fell by 683K and full-time jobs dropped by 1.5 million.
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The housing market remains sclerotic due to high mortgage rates. Sales of new and existing homes have sagged as rates spiked.
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Job openings and hires are trending down, indicating the labor market has moved toward balance. But downtrends rarely flatline.
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Equity markets gave back some gains in early January after the “Santa Claus” rally. Some correction is normal after a 16% rise.
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Mortgage rates and bond yields also rose slightly in early January, giving back a bit of their declines. Rates should fall as the Fed cuts rates in 2024.