How Jobs, Inflation May Influence Borrowing Costs

iQoncept©/ Adobe Stock

About four in 10 workers say they’d look for a new job if their employer makes them come into the office five days a week. There are nearly 11 million job openings in the U.S., a near-record high level.

The real estate industry is closely watching the so-called “Great Resignation,” a movement that started with the pandemic in which people are leaving the workforce in historically higher numbers. As more Americans quit their jobs, will they set out for greener pastures by moving to a new location? The trend is only growing: In November, 4.5 million Americans left their jobs, pushing the nation’s resignation rate to a record high of 3%, MarketWatch reports. Some of the resignations have come as employers look to bring their workers back to the office after more than a year of remote work. About four in 10 workers say they’d look for a new job if their employer makes them come into the office five days a week, according to a survey of more than 2,300 people by University of Chicago researchers. “Help wanted” signs seem to be everywhere, as there are 10.6 million job openings. That is much higher than the figures for unemployed Americans in search of a job, at 6.3 million,” said Lawrence Yun, chief economist at the National Association of Realtors®. “The wage rate is showing an accelerating trend, with a 6% annualized gain in the fourth quarter of last year, up from 5% in the third quarter and 2% to 3% before the onset of the pandemic. Higher wages could feed into higher consumer price inflation, which, in turn, will lead to higher mortgage rates because lenders need to compensate for the loss in value of the purchasing power of money.” More Americans may be feeling less tethered to a certain location. About 41% of employed Americans say they’d be willing to take a pay cut or accept a new job with a lower salary to move to a more affordable location, according to the latest consumer survey from Coldwell Banker. Younger people appear more willing to move than older workers: The Coldwell Banker survey found that respondents ages 18 to 44 are more likely than those ages 45 to 54 to be willing to accept a lower income in order to move to a more affordable location.

Miami, Atlanta, and Austin, Texas, have emerged as top locations where Americans say they’d like to relocate once they resign from their jobs, the survey found. According to the U.S. Census, Texas was the top state in numeric growth from 2020 to 2021, adding 310,288 people. Florida ranked No. 2 with 211,196 people added. Arizona was third with 98,330 new people. Utah came in seventh place, adding 56,291 people. The top five states in numeric decline were: 1. New York, which lost 319,020 people. 2. California, -261,902; 3. Illinois, -113,776; 4. Massachusetts, -37497; and 5. Louisiana, -27,156.

THE BMW X RANGE.

At BMW, we believe that every driver deserves a vehicle perfectly designed to fit into their lifestyle.

That’s why we created a full range of Sports Activity vehicles,® each individually crafted to balance dynamic power, spacious interior and impeccable design in ways only BMW can.

Like the nimble BMW X1, which has adaptable suspension to dominate any road. Or the BMW X3, which balances spacious interior with incredibly agile handling. And then there’s the BMW X7, which is the culmination of comfort and luxury, and the biggest BMW ever created.

No matter what roads you’re trying to conquer, there’s an X to take you there.

BMW. The Ultimate Driving Machine.®

FOR THE TRAILBLAZERS WHO PAVED THE WAY AND THE AGENTS LEADING US INTO THE FUTURE.