Posts Tagged ‘wages’

The Recession: 10 Years Later

Posted on December 08, 2017 by Laura Lam

In December 2007, employment peaked and started to head south – for two long years.  What followed: The loss of more than 8 million jobs, half the value of the Dow and the S&P 500, and trillions of dollars in retirement accounts and household wealth. Lives and businesses were ruined and whole neighborhoods emptied out, as banks took back homes bought on badly underwritten credit. A decade later, the American economy has recovered in many ways. Employers have been steadily adding jobs since early 2010, the stock market is booming and home prices have reached new all-time highs.  But in…

Home Affordability Hits Lowest Level in a Decade

Posted on July 11, 2017 by Laura Lam

Affordability dropped in the second quarter, sinking to its lowest level since 2008, according to the Q2 2017 U.S. Home Affordability Index by ATTOM Data Solutions.  The median national home price came in at $253,000 in the second quarter, hitting a 9-year low in affordability at the lowest level since the third quarter of 2008, the report shows. This is up 7.7% from last year, the largest annual increase since the first quarter of 2014. As home prices increased, the average weekly wage nationwide dropped to $1,067 in the fourth quarter, down 1.4% from last year. This represents the largest annual…

2017 Will Bring Modest Economic Growth

Posted on February 23, 2017 by Laura Lam

The Mortgage Bankers Association (MBA) has looked into the future, and they are not complaining.  “We’re expecting steady, modest growth in the U.S. economy,” said MBA Vice President of Research & Economics Lynn Fisher at the MBA National Mortgage Servicing Conference & Expo. “We’re seeing real economic growth in a number of indicators.” Fisher noted that as federal unemployment rates decline, employers may find difficulty in attracting workers to meet specific skill-sets. “This in turn is going to drive up wages,” she said. “Over the next two years, unemployment will fall to around 4.5%, suggesting further tightening on the labor front.” Fisher…

Rising Interest Rates Take Toll on Home Affordability

Posted on February 02, 2017 by Laura Lam

November brought a reversal to the growing home affordability with a sudden drop, according to First American Financial Corp.’s Real House Price Index.  What the company calls “real house prices” increased 4.4% from October to November, reversing the decreasing trend. “Real purchasing-power adjusted house prices jumped 4.4% month-over-month, reversing a 6-month trend of decreases,” said First American Chief Economist Mark Fleming.  “Year-over-year, real house prices have increased 2%.”  “The shift in real house prices signals a decrease in affordability, driven primarily by rising mortgage rates,” he added.  “However, while rates are increasing, they remain very low from a historical standpoint.” The RHPI…

Existing Homes Fall to 7-Month Low

Posted on October 17, 2016 by Laura Lam

Contracts to purchase previously owned homes fell to a seven-month low in August, held back by a tight supply in the housing market, according to a recent report from the National Association of Realtors.   Pending home sales fell 2.4% (the median forecast was for no change) after a revised 1.2% increase in July. The index dropped to a seasonally adjusted 108.5, the lowest since January, from 111.2 in July. Contract signings rose 4% from August 2015 on an unadjusted basis. The fall in contract signings was the third in four months, adding to signs that a relative paucity of available homes…

Housing Market Could Soar if Wages Grow

Posted on April 04, 2016 by Laura Lam

The housing market is poised to post its best year in a decade, although employers’ resistance to giving workers a raise is a major concern, said Freddie Mac last week.  Freddie Mac predicted that home sales, housing starts and house prices will reach their highest levels since 2006, according to a news release. Those metrics will be driven by low mortgage rates, as rates on the 30-year fixed have remained below 4% this year. An improving labor market should also propel the housing market, Freddie Mac said. The unemployment rate recently dipped below 5%, and an average of 205,000 net…

Women Face Financial Woes in Retirement

Posted on April 29, 2014 by Saldutti

More women than men save for retirement, and women save a larger share of their earnings, but they will still likely be worse off when they retire because they earn less and spend more time out of the workforce, a new study says.  The study of the savings rates of about 9 million U.S. employees found that about 60% of the workers saved at a rate of about 7% of their earnings, according to the study released by ADP Research Institute. Most women – 74% – saved at an average rate of 7%, while most men – 66% – saved…