We asked AI to analyze our Economic Dashboard and here are the results!

We had AI (artificial intelligence) analyze our Economic Dashboard on September 16, 2024. It viewed all of the main economic indicators you see on the dashboard and gave a summary of the state of the US economy as of that date. We think it's pretty accurate and is in line with what most economists would say.

Housing Market

• Mortgage Rates: Conforming (6.038%) and Jumbo (6.481%) rates are relatively high, which can dampen affordability and demand in the housing market. FHA and USDA rates are slightly lower, making those options more appealing for first-time homebuyers.
• Median Listing Price: At $429,990, home prices remain high, which, combined with elevated mortgage rates, could hinder access to homeownership for many buyers.
• Inventory: With 909,344 listings, housing inventory appears to be relatively stable. However, the level of new construction (851,000 units) suggests an effort to meet demand, although the high costs might still restrict supply.

Inflation

• Current Inflation Rates: The 1-Year Inflation Rate at 2.53% is relatively moderate, indicating a return towards the Federal Reserve's target of around 2%. The decrease from 2.89% last month shows a positive trend.
• However, the 3-Year (15.07%) and 5-Year (22.70%) rates suggest lingering inflationary pressures in the longer term, which may concern consumers and investors about persistent price increases.

Employment

• Unemployment Rate: At 4.2%, the unemployment rate is within a healthy range, indicating a relatively strong labor market.
• Job Openings and Layoffs: 7,673,000 job openings vs. 1,762,000 layoffs suggests a tight labor market, with demand for workers outpacing layoffs. This is a positive sign for employment stability.
• The number of new hires (5,521,000) and quitters (3,277,000) indicates a dynamic job market, as people feel confident enough to leave their jobs for better opportunities.

Overall Economic Outlook

• Affordability Issues: High mortgage rates and median home prices are significant barriers for potential homebuyers, which could slow down the housing market and affect related industries.
• Inflationary Trends: The recent drop in the 1-year inflation rate is promising, but the elevated longer-term inflation rates raise concerns about future cost-of-living adjustments and consumer purchasing power.
• Strong Labor Market: The low unemployment rate and high number of job openings reflect a resilient economy, suggesting that consumer spending may remain robust in the near term.

Conclusion

• The US economy shows signs of resilience, particularly in the labor market, but challenges remain in housing affordability and long-term inflation. Policymakers may need to balance interest rates and economic growth strategies to ensure sustained stability without reigniting inflation.
• Overall, while there are areas of concern, the underlying economic fundamentals appear relatively strong.