EconUpdate by P. Duffy
Consumer credit use rebounds at 10 percent annual rate in May
What does this mean? Rising consumer confidence and pent-up demand fueled the rapid increase.
In May, consumer credit increased at a seasonally adjusted annual rate of 10 percent. Revolving credit (such as for credit cards) increased at an annual rate of 11.4 percent, while nonrevolving credit (such as student and car loans) increased at an annual rate of 9.5 percent.
Employment Trends Index up 1.99 percent in June and 28.2 percent year-on-year
What does this mean? As workers come off the sidelines and unemployment rates decline, the labor market is expected to be tight until the next recession.
The Employment Trends Index increased 1.99 percent to 109.84 in June, and is up 28.2 percent year-on-year. In the coming months, the US labor market is likely to remain very tight but will likely moderate as some of the labor supply constraints ease. As the number of jobs in the US economy continues to grow at an historically high rate, unemployment may again dip below four percent within the next 12 months.
Homebuyer Demand Index slips during first week of July, but still up 12 percent year-on-year
What does this mean? More homes for sale and less of a rush to capture low mortgage rates have slightly cooled demand.
The number of homes newly listed for sale surpassed 2019 levels for the first time since the start of the year during the four weeks ending July 4. Despite a long-awaited increase in the supply of homes for sale, homebuying demand continued to slip, leaving the market feeling a few degrees cooler. The seasonally adjusted Redfin Homebuyer Demand Index fell during the week ending July 4, but the drop was much smaller than it was over the holiday weekend last year, and the demand index is currently up 12% from a year earlier.