Danielle Hale

Mortgage rates might be ticking up, but there is a bright spot on the horizon as existing-home sales climb.

This week, our key data covered the labor market as unemployment edged up and hourly wages climbed. Hiring rebounded in November, and hourly wages climbed 4.0%, faster than recent inflation. And while job openings are down from one year ago, they still remain relatively abundant. This gradual adjustment should clear the path for the Fed to continue normalizing monetary policy, and I expect another quarter point rate cut later in December, especially if inflation is moderate next week.

The consumer price index showed that overall inflation picked up to 2.7% in November as energy price declines didn't fully offset shelter gains.

Existing-home sales climbed 6.1% in November, to a pace of 4.15 million, surpassing a 4 million sales pace for the first time in 6 months. The median home sale price rose 4.7%.

The December jobs report showed hiring ticked up with a net 256,000 jobs added. Unemployment dipped as wage growth slowed.

The consumer price index showed that overall inflation picked up to 2.9% in December as energy prices picked up. Core inflation dropped to 3.2%.

The Freddie Mac rate for a 30-year mortgage rose 11 basis points to 7.04% this week, the highest level in eight months.

December 2024 marks the 17th month of year-over-year rent decline in a row for 0-2 bedroom properties. Asking rents dipped by $18, or -1.1%, year over year.

In December 2024, the median asking rent for all rental properties listed on Realtor in New York City was $3,382, an increase of 5.6% or $180 over December of 2023. Rents are showing strong growth in New York City while they’ve been falling year over year across the country for seventeen consecutive months.

The U.S. economy grew in the fourth quarter, but at a slower pace than in the third...