Read the highlights of this week’s commentary from Helios:
- The Bureau of Labor Statistics’ preliminary estimate of the annual benchmark revision to US payroll data showed the economy added 818,000 fewer jobs than reported from April 2023 to March 2024, about 68,000 fewer each month. If the estimates are confirmed in the final benchmarking next February, it would represent the largest downward revision to annual payrolls since 2009.
- US mortgage rates dropped to a new low for 2024, with the average 30-year fixed loan rate at 6.46%. While rates have dropped from over 7% earlier this year, Freddie Mac’s chief economist noted that rates still aren’t low enough to motivate potential homebuyers, suggesting that a further decline of another percentage point may be needed to spur demand.
- The FOMC’s July meeting minutes were released this week, and the “vast majority” noted that if the data continued to come in as projected, a September rate cut “would likely be appropriate.” On Friday, Fed Chair Powell laid the groundwork for future rate cuts, stating, “The time has come for policy to adjust.”
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