Chris Nash here with your monthly market update – and there was a lot to unpack as July came to a close.
The Federal Reserve kept its key interest rate unchanged, as expected. While two Fed members supported a small rate cut, most are still taking a cautious approach as they monitor inflation and the job market.
Inflation was slightly hotter than forecast. Core PCE – the Fed’s preferred inflation gauge – rose 0.3% in June, bringing the annual rate to 2.8%, just above the expected 2.7%.
Meanwhile, the job market showed signs of softening. The Bureau of Labor Statistics reported just 73,000 jobs added in July, well below expectations, and revised May and June numbers downward by a combined 258,000 jobs. Continuing unemployment claims also stayed elevated above 1.9 million, a sign that more people are staying unemployed longer. However, ADP data showed the private sector added 104,000 jobs in July, a solid rebound from June losses.
In housing news, prices continue to rise year-over-year. Home values in May were up 2.3% to 2.8% compared to a year ago, according to the Case-Shiller and FHFA indexes. And while pending home sales slowed in June, the National Association of REALTORS® reports growing optimism about buyer activity ahead.
If you’re thinking about buying, refinancing or have questions about the market, let’s connect. I’m here to help you navigate your options.
