Welcome to the 72nd issue of the California Coronavirus Weekly Recap newsletter.
In This Issue:
- The Economy & Your Finances: Jobless claims rise in California and nationwide
- The Market & Industry: Homebuyers renewing interest in condos
- Around the State: California to require healthcare workers and state employees to show proof of vaccination
- Health Check-Up: Severe breakthrough infections remain rare
The Economy & Your Finances: Jobless claims rise in California and nationwideNationwide jobless claims rose to 419,000 last week, up from a pandemic low of 368,000 the week prior. Economists characterized last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data. Claims rose in California as well, from 56,925 to 58,259.
As of July 25, California is issuing debit cards with a security chip to residents receiving unemployment income to safeguard against fraud. The California Employment Development Department (EDD) also announced it would keep paying people unemployment benefits even when the department is investigating the individual’s eligibility. The change applies only to people who have certified for benefits and have already received at least one week of payment in the past.
U.S. economic growth cooled in June, according to the Chicago Fed National Activity Index. The personal consumption and housing category contributed negatively to the index; housing starts increased to 1.643 million units, but housing permits decreased compared with May.
Sources: MarketWatch, AP News, The Mercury News, CNBC
The Market & Industry: Homebuyers renewing interest in condos
Condos are selling above asking price for the first time in at least nine years, according to Redfin. Nationwide, the typical condo sold for 0.7% above its asking price in June, following a premium of 0.4% in May.
The 30-year fixed-rate mortgage sank to 2.78 percent last week, and the 15-year fixed-rate mortgage sank to an all-time low of 2.12 percent. And U.S. existing home sales rose slightly in June after four straight months of declines, and home prices remain on an upward trend.
Sales of newly constructed homes declined 6.6 percent in June, dropping to the lowest level in 14 months. The fall in sales reflects buyer sticker shock as supply constraints continue to put upward pressure on home prices. Lumber prices have fallen in recent months, but those savings have not been passed on to consumers: Demand for remodeling has fallen now that many consumers are choosing to spend that money on vacations, and homebuilders have slowed construction due to high costs.
Sources: CNBC, C.A.R., HousingWire, Inman News, Redfin
Around the State: California to require healthcare workers and state employees to show proof of vaccination
Officials announced Monday that beginning next month, California will require state employees and healthcare workers to show proof of COVID-19 vaccination or get tested weekly in order to work. The new rule will take effect next month and is aimed at slowing rising infections among the unvaccinated. Right now, around 62 percent of the eligible California population is fully vaccinated.
The hyper-transmissible Delta variant now accounts for more than 83 percent of new COVID-19 cases nationwide. In California, the Delta variant has pushed hospitalizations to the highest levels since early spring.
In San Francisco, cases have been rising faster than in California as a whole, and Los Angeles would be in the “purple tier” if California were still using Governor Newsom’s Blueprint for a Safer Economy. Both Los Angeles and San Diego counties reported an 80 percent increase in cases last week. And last week, officials in Los Angeles County shared that 20 percent of COVID cases diagnosed in June were in fully vaccinated individuals.
As of 1 p.m., cases in California number 3,903,074 and hospitalizations numbered 3,200. The statewide average for ICU bed availability was 30.3 percent.