DID YOU KNOW? U.S. employment grew modestly in August and unemployment showed signs of stabilizing at historically low levels, signs that a global economic slowdown isn’t driving the U.S. into outright recession but has dented the growth outlook. 130,000 payrolls were added in August and has averaged 156,000 new jobs a month over the past 3 months, down from average growth of 190,000 a month in the 8 years since employment started picking up after the last recession in 2007/9. Unemployment remains at historic lows at 3.7%. I would bet a rate-cut is imminent. (WSJ)
DID YOU KNOW? The share of workers aged 25 to 54 working or seeking work increased sharply to 82.6% in August from 82% in July, a sign that prime-age individuals remain optimistic about their job prospects. Average hourly earnings climbed 3.2% from August 2018, enough to keep worker earnings well above the inflation rate. The pay measure has now been above the 3% threshold for more than a year after lagging for much of the expansion. (WSJ)
DID YOU KNOW? Fed Chairman Powell said the central bank’s pivot this year to lower interest rates has helped sustain U.S. economic growth. He gave mostly positive reviews to where the U.S. stands now, even while much of the rest of the world weakens. He cited the US-China trade war as a drag on global economies that results in business uncertainty and holding back on investment.
“We’re not forecasting or expecting a recession. The most likely outlook is still moderate growth, a strong labor market and inflation continuing to move back up.” – Fed Chairman Powell
DID YOU KNOW? Mortgage rates dropped to their lowest level since October 2016 due to weaker economic data over the past week. The 30-year fixed-rate mortgage averaged 3.49% during the week ending Sept. 5, down 9 basis points from the previous week.
Rates for 30-year home loans have only increased nine times so far this year, otherwise, they have dropped or remained flat from week to week. The 15-year fixed-rate mortgage moved down 6 basis points to an average of 3.00%. The 5/1 adjustable-rate mortgage averaged 3.30%, falling 1 basis point. (Marketwatch)
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