Here are five economic reasons to be thankful this Thanksgiving. (Hat Tip to Neil Irwin who started doing this years ago)

1) The Unemployment Rate is at 4.1%

unemployment rateThe unemployment rate was at 4.1% in October.

The unemployment rate is down from 14.7% in April 2020 (the highest rate since the Great Depression).

The unemployment rate is up from 3.4% in April 2023 – and that matched the lowest unemployment rate since 1969!

This is a historically low unemployment rate.


2) Low unemployment claims.

This graph shows the 4-week moving average of weekly claims since 1971.

Weekly claims were at 213,000 last week.

The dashed line on the graph is the current 4-week average.

Even though weekly claims have bounced around a little recently, the 4-week average is close to the lowest level in 50 years.

3) Mortgage Debt as a Percent of GDP has Fallen Significantly

Mortgage Debt as Percent GDP This graph shows household mortgage debt as a percentage of GDP.

Note this graph is through Q2 2024 was impacted by the sharp decline in Q2 2020 GDP.

Mortgage debt is up $2.34 trillion from the peak during the housing bubble, but, as a percentage of GDP is at 45.9% – down from Q1 – and down from a peak of 73.3% of GDP during the housing bust.

4) Mortgage Delinquency Rate Near the Lowest Level since at least 1979

MBA National Delinquency Survey

This graph, based on data from the MBA through Q3 2024, shows the percentage of loans delinquent by days past due.
Although mortgage delinquencies are up a little from Q2 2023 – the lowest level since the MBA survey started in 1979 – delinquencies are still historically very low.
Note: The sharp increase in 2020 in the 90-day bucket was due to loans in forbearance (included as delinquent but not reported to the credit bureaus).

The percentage of loans in the foreclosure process are close to the record low.

5) Household Debt burdens at Low Levels (ex-pandemic)

Financial ObligationsThis graph, based on data from the Federal Reserve, shows the Household Debt Service Ratio (DSR), and the DSR for mortgages (blue) and consumer debt (yellow).

The Household debt service ratio was at 11.5% in Q2 2024, slightly below the pre-pandemic level of 11.6%.
The DSR for mortgages (blue) has increased recently but is close to the pre-pandemic level.

This data suggests aggregate household cash flow is in a solid position.

Happy Thanksgiving to All!

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