U.S. employers added 478,000 new jobs in February – The Department of Labor and Statistics reported that 678,000 new jobs were added in February. Economists surveyed had expected 400,000 new jobs. This was a stellar number in a short month. The unemployment rate fell to 3.8% in February, down from 4% in January. The labor-force participation rate (the share of workers with a job or actively looking for a job) rose to 62.3% in February, up from 62.2% in January. It remains below the 63.6% level before the pandemic but is moving up steadily as more people are returning to the workforce. Average hourly wages did not increase month-over-month but are up on a year-over-year basis.
Stock markets were down this week – All eyes were focused on the war in Ukraine as Russia escalated it’s heavy bombardment of the country. Increased sanctions have shut-off Russia from the world. That will have some impact at home. Oil prices jumped to $116 a barrel, the highest level since 2008. Gas prices hit the highest levels ever seen and this will also force up energy costs. At the same time a stellar jobs report and continued strong corporate profits has the U.S. economy looking pretty resilient. The Dow Jones Industrial Average closed the week at 33,614.17, down 1.3% from 34,058.75 last week. It is down 7.5% year-to-date. The S&P 500 closed the week at 4,328.87, down 1.3% from 4,384.65 last week. The S&P is down 9.3% year-to-date. The NASDAQ closed the week at 13,314.44, down 2.8% from 13,694.52 last week. It is down 14.9%, year-to-date.
U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.74%, down from 1.97% last week. The 30-year treasury bond yield ended the week at 2.16%, down from 2.29% last week. We watch bond yields because mortgage rates often follow treasury bond yields.
Mortgage rates – The March 3, 2022, Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products were as follows: The 30-year fixed mortgage rate was 3.76%, down from 3.89% last week. The 15-year fixed was 3.01%, down from 3.14% last week. The 5-year ARM was 2.91%, down from 2.98% last week.
