Episode 56: The labor market continued to cool, but interest rates declined, leading to a surge in mortgage activity.
- Employers added 50,000 jobs in December; unemployment held at 4.4%, according to the Bureau of Labor Statistics.
- Total payroll growth for 2025 reached 584,000 jobs.
- Average hourly earnings rose 0.3% in December and 3.8% year over year.
- Job openings held at 7.1 million in November, nearly 900,000 fewer than a year earlier.
- Headline CPI increased 0.3% in December and 2.7% year over year; core CPI rose 2.6% year-over-year.
- Food prices climbed 0.7% in December; energy prices rose 0.3%.
- Producer prices increased 0.2% in November; core producer prices are up 3.5% year-over-year.
- Single‑family starts rose more than 5%; completions increased modestly but remain below last year’s levels.
- Existing home sales rose 5.1% in December to a 4.35 million for the year.
- Mortgage applications surged nearly 29% last week; purchase activity was up 13% year-over-year.
- The average 30‑year fixed mortgage rate dipped to about 6.2%.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
