Report as of February 2023
More mixed news last week. Consumers’ evaluation of their present situation improved to a
9-month high, but they were less upbeat about the future of the economy as fears of a recession still loom.
Construction spending downshifted at the end of last year and while the recent retreat in mortgage rates may
improve activity in the housing market, performance remains volatile and sluggish. However, the big news last
week was the Fed scaling down their rate hike to a quarter of a point as encouraging inflation data suggests the
worst is behind us. However, the good news was short-lived as the latest jobs report showed the U.S. economy
added more jobs than expected in January, which puts pressure on the Fed to keep rates high this year to prevent
a resurgence amidst a strong labor market.
Courtesy of California Association of Realtors.
