Final Thoughts Final ThoughtsWeek of October 19th, 2020 in Review Continuing Decline in Unemployment The US unemployment rate declined to 7.9 percent in September 2020 from 8.4 percent in the previous month and below market expectations of 8.2 percent, as fewer people were looking for jobs. The labor force dropped by 0.7 million to 160.1 million, with the number of unemployed persons falling by 1.00 million to 12.6 million and employment rising by just 0.3 million to 147.5 million. The jobless rate remained well above prepandemic levels as the recovery from COVID-19 shock showed signs of slowing amid diminishing government stimulus and a spike in new cases
Builder Confidence Reaches Another Record High The National Association of Home Builders (NAHB) Housing Market Index rose from 83 to 85 in October, marking the second month in a row that it has set a record high. This report is a near real-time read on builder confidence, and any reading above 50 on this index that goes from 1 to 100 signals expansion. All three components of the index were positive, with current sales conditions rising 2 points to 90, sales expectations in the next six months up 3 points to 88, and buyer traffic remaining unchanged at 74. It’s important to note that builders have said that they are being challenged by a lack of land, labor, and seriously spiking material costs.
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