Welcome to the 103rd issue of the California Coronavirus Weekly Recap newsletter.
In This Issue:
- The Economy & Your Finances: U.S. unemployment falls; CA unemployment also dips
- The Market & Industry: Mortgage rates dip slightly; existing home sales strong; conflict between Russia and Ukraine may increase inflation but also demand for the U.S. dollar
- Around the State: State dropped indoor masks; March 12, schools can decide whether to keep masking indoors; cases continue to drop
- Health Check-Up: Where to schedule your booster
The Economy & Your Finances: U.S. unemployment falls; CA unemployment also dipsThe number of Americans filing new claims for unemployment benefits fell more than expected last week, down by 17,000 to 232,000. Economists had predicted only 14,000 fewer. This indicates that the labor market recovery is improving. Unemployment rolls are the smallest they’ve been since 1970, with an acute shortage of workers, a near-record number of job openings, and minimal layoffs. Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said that “we see the downtrend in filings persisting as virus-related disruptions continue to dissipate and businesses return to more normal operations.”
California’s unemployment rate was approximately 2.62 percent, or more than 1 million people, but its initial claims dropped by almost 6 percent from the week before, to just 45,519.
Sources: Reuters, EDD
The Market & Industry: Mortgage rates dip slightly; existing home sales strong; conflict between Russia and Ukraine may increase inflation but also demand for the U.S. dollar
After rising precipitously during the first 6 weeks of 2022, the average 30-year fixed rate mortgage ticked down by 3 basis points in the latest Freddie Mac survey to 3.89 percent. This is only the second time in the past 10 weeks when rates have ebbed, and although the reprieve is expected to be temporary, it is welcome news for homebuyers looking to lock in current rates before they resume their uptrend. Fortunately, 10-year Treasuries also saw a small reduction in rates last week and with mortgage spreads having increased sharply since the uptrend began, the mortgage market may see rates climb more slowly when they do begin to rise.
Despite the rapid rise in interest rates so far this year, existing home sales continue to hold up well. In fact, the first four weeks of February saw more homes close in California than during the same four weeks in January. Given that January’s pace of sales was still roughly 5 percent above pre-pandemic levels, this suggests broader resiliency for the market. Sales are still down on a year-to-year basis from the nearly 15-year highs where the market began 2021 but maintaining or exceeding last month’s level despite higher rates and still-depressed inventory levels is an encouraging sign that buyer demand remains relatively robust.
The recent conflict developing between Russia and Ukraine is likely to introduce competing economic and housing market impacts in the weeks and months ahead. On the downside, this will likely introduce more inflationary pressures, as global oil supplies from Russia are impacted by sanctions. Increased financial market volatility is likely as well, which could introduce macroeconomic headwinds as consumers pull back from lost wealth and rising prices. On the other hand, global turmoil will likely increase demand for U.S. dollars and U.S. Treasuries, which could alleviate some of the recent upward pressure on interest rates and could result in less domestic inflationary pressures.
Sources: Freddie Mac, the Market Reports, Marketwatch, C.A.R. Market Minute
Around the State: State dropped indoor masks; March 12, schools can decide whether to keep masking indoors; cases continue to drop
Though the state of California announced that masks would no longer be required indoors (except at certain locations such as hospitals, nursing homes, and on public transportation), Los Angeles County maintained stricter masking rules. However, on Tuesday, the county said it would announce on Friday that indoor masking will no longer be required in some places such as bars, gyms, stores, offices, restaurants and movie theaters. Both California and L.A. County officials are still “strongly recommending” mask use in indoor public settings. Proof of vaccination or recent COVID-19 test will still be required to enter “mega-events” even outdoors.
Starting March 12, schools will be allowed to decide whether to require masks indoors. Students and staff can already go maskless outdoors on school campuses. County and state officials still “strongly recommend” continued masking at K-12 and childcare sites.
Similarly, San Jose no longer will require people attending events at city-owned facilities like the SAP Center and Center for Performing Arts to show proof of having received a booster shot before entering. City employees may also see some bending in a policy that demanded them to get a booster shot or face up to a week of unpaid leave. About 750 employees have resisted that rule so far, according to the city.
As of 7:33 p.m. yesterday, there had been 8,962,360 reported cases of COVID-19 in the state, for a daily average of 6,579. This is 67.5 percent lower than two weeks prior. Hospitalizations statewide continue to drop, to 4,129, which is 27 percent fewer than the last week. Statewide, 23.2 percent of ICU beds are available. California has administered 70,516,914 doses of the vaccine, and 78.4 percent of residents have received at least one dose. Over the last seven days, an average of 43,752 vaccine doses have been given per day. Among all Californians, 70 percent are fully vaccinated.
Sources: Los Angeles Times, CA.gov
Health Check-Up: Where to schedule your booster
To get vaccinated or boosted, visit California’s vaccination website, myturn.ca.gov, which is offering appointments for people aged 5 and up. Vaccinations are also available at walk-in clinics, doctors’ offices and pharmacies. Some counties have their own vaccine scheduling or information websites, such as L.A. County’s scheduling site, San Francisco’s scheduling site, San Diego County’s information site, Orange County’s information site, and Sacramento County’s information site.
Sources: L.A. County Dept. of Public Health, SF.gov, San Diego County, Orange County, Sacramento County Dept. of Public Health