Unemployment data has been released, revealing an interesting trend: different demographic groups are facing varying, and in some cases significantly higher, levels of unemployment.
While the overall unemployment rate has remained steady at 4.3%, some demographics are experiencing substantially higher unemployment within their respective fields. This comes alongside hourly wage reports which have met the expected growth level for this month.
Historically, however, wage growth has been offset by inflation rising at a much faster pace. As a result, many Americans have found the cost of living increasingly difficult to manage as they attempt to economize and cope with rising fuel, energy, and consumer goods costs.
Unemployment Reports
Unemployment rates for every major group: The lowest is 3.2%, the highest 14.7% The U.S. unemployment rate stayed at 4.3% in May for the third month in a row, but different groups face different challenges finding a job or keeping one.
U.S. Hourly Wages
Inflation surged throughout the U.S. economy in late April and May, forcing Americans to try to quickly adjust to a new phase of reduced spending power, according to the Federal Reserve’s latest report on economic conditions around the country, known as the “beige book.” Affordability pressures due to higher energy prices from the war with Iran led to a widening gap between spending across income groups.
Primary Mortgage Market Survey Index
- 15-Year FRM rates saw a decrease of -0.02%, bringing the current rate to 5.79%.
- 30-Year FRM rates saw a decrease of -0.05%, bringing the current rate to 6.48%.
MND Rate Index
- 30-Year FHA rates saw a 0.08% increase, with current rate at 6.18%.
- 30-Year VA rates saw a 0.07% increase, with current rate at 6.19%.
Jobless Claims
Initial Claims were reported to be 225,000 compared to the expected claims of 215,000. The previous week landed at 215,000.
What’s Ahead
Attention now turns to the upcoming CPI and PPI reports, which will offer fresh insight into inflation trends.
Many buyers worry about their credit score before applying for a mortgage. That makes sense because credit can affect loan options, interest rate, and overall approval strength. But your credit score is only 1 piece of the mortgage picture. A strong loan file includes several parts working together.
