For much of the past few years, wages for the bottom third of U.S. earners grew at a faster rate than for the top third. But since the start of the year, top earners have pulled far ahead. In August, annual wage and salary growth fell to 0.9% for the bottom third, the smallest gain since 2016, while the top third saw growth of 3.6% year over year, the most since November 2021.
Residential Transactions
More than 15% of home purchase agreements fell through in July, which is the highest percentage for that month since tracking cancellations in 2017, and there are currently 36% more home sellers than buyers.
Gold
Gold’s value has ballooned by 39% this year, putting it on track for a greater annual price jump than during the depths of the Covid-19 pandemic or 2007-09 recession. Futures for the precious metal haven’t surged so much in a year since 1979.
30-Year Fixed
The average 30-year fixed mortgage rate fell to 6.35%. That’s the lowest level since October and a notable drop from January, when rates were above 7%.
Household Incomes
Inflation-adjusted median household income was $83,730 in 2024, not statistically different from the 2023.
PNC FirstBank
PNC Financial Services Group will buy FirstBank Holding Co for $4.1 billion to expand its presence in the West.
Fed Cut
Fed Chair Jerome Powell had previously signaled the central bank was on track to cut rates if data suggested that the labor market was slowing. Friday’s report provided a clear sign that payroll growth had downshifted meaningfully since the beginning of the year.
Dealmaking
The spate of corporate breakups has spurred a comeback in deal activity. Deal volumes are up 23% in the U.S. year over year. But not all companies are shying away from megamergers: The year’s biggest deal so far was Union Pacific’s $71.5 billion acquisition of fellow railroad Norfolk Southern.
BX Raise
Blackstone closed on $5.5 billion for its latest infrastructure secondaries fund, Strategic Partners Infrastructure IV L.P., and its related committed program vehicles. SP Infrastructure IV is the world’s largest dedicated infrastructure secondaries fund raised to-date.
San Fran Office
San Fransisco is still flooded with vacant office space, and many of its buildings are obsolete or in distress. The vacancy rate is 22.8%, down slightly from the record high it hit last year but still more than triple what it was in 2019.