"The worst of the impact of higher mortgage rates seems to be behind us. If we continue to see improvements in employment and if mortgage rates stay where they are, we should see these levels sustained."
- Millan Mulraine is a Senior U.S. Macro Strategist
Even in the face of what happened in Washington in October, the world's largest economy is performing surprisingly well, as private sector job creation surged in November, while sales of new homes soared by the most in three decades. On the back of the stronger-than-expected data the greenback was traded mostly higher relative to its major peers on Wednesday.
A report from the Automatic Data Processing (ADP) unveiled data from the labour market, saying the total number of employed Americans in the private sector jumped by 215,000, surpassing analysts' predictions of 170,000; this figure is up from the revised 184,000 a month earlier. The gain was mostly led by strong job creation, as 176,000 new positions were available, though goods-producing sector added 40,000 in November. Meanwhile, both construction and manufacturing sectors created new 18,000 work places each.
The housing market joined the labour and signalled buyers are starting to apply for mortgage even despite higher rates. Sales of new homes jumped 25.4% to a 444,000 annualized pace, following a 354,000 a month earlier. Sales are improving as gains in employment and higher stock prices boost consumers' willingness to make huge purchases. Moreover, outlook for both markets is brightening.
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