Private payrolls surged in March as the labor market continues to improve as the remaining closed states reopen. The March ADP Private Payrolls report saw 517,000 new jobs created in the private sector, well above the 176,000 created in February. It was the largest gain since September. Nela Richardson, chief economist, ADP said, "Job growth in the service sector significantly outpaced its recent monthly average, led with notable increase by the leisure and hospitality industry. This sector has the most opportunity to improve as the economy continues to gradually reopen and the vaccine is made more widely available."
The White House is set to roll out its massive infrastructure plan today with signs of big tax hikes within the details. The new package could be in the $5T area with it split between two plans. Tax hikes to businesses and individuals will be in the spending package. Also, the bill calls for funds for U.S. transportation infrastructure, water systems, broadband and manufacturing.
After weeks of higher rates, home borrowing costs declined in the latest week and remain at historically low levels. The MBA reports that the 30-year fixed-rate mortgage fell three basis points to 3.33% with 0.39 in points for the week ended March 26, 2021. The Market Composite Index, a measure of total mortgage loan application volume fell 2.2%, the Purchase Index declined by 1.5% while the Refinance Index fell 2.5%. Spokesperson Joel Kan said, "Inadequate housing inventory continues to put upward pressure on home prices. As both home-price growth and mortgage rates continue this upward trend, we may see affordability challenges become more severe if new and existing supply does not significantly pick up."