Market outlook remains calm – for now – despite war outbreak
Financial markets trembled towards the end of this week at the prospect of a lengthy and punishing conflict in the Middle East, particularly after President Trump said Thursday that the war could only end with Iran’s “unconditional surrender.”
For now, though, experts say it’s too early to panic about whether the conflict will have a lasting negative effect on the economy. “The impact on US GDP and inflation should be modest, assuming a limited military campaign,” said John Canavan, lead US analyst at Oxford Economics, “possibly allowing the Federal Reserve to look through the immediate volatility.”
But the latest indication of a sagging labor market could give some mortgage shoppers pause for thought even as the market looks ahead to spring buying season.
“February’s report suggests hiring remains cautious, which can weigh on housing turnover even when affordability is improving,” Zillow senior economist Orphe Divounguy said.
“If softer growth helps mortgage rates ease, that supports affordability – but households still need strong income growth and confidence in job security to list, buy, or move.”