Economy News
Economic news covering Fed interest rate decisions, inflation data, jobs reports, GDP growth, and macroeconomic trends affecting the stock market.
2027 Social Security COLA Estimate: $63 Billion Annual Boost
A 3.8% COLA estimate for 2027 Social Security benefits could raise annual payouts by $63 billion, with typical retired workers receiving an extra $79 per month.
Second-Home Mortgage Originations See First Annual Gain in Four Years, Wealthy Buyers Drive Recovery
U.S. second-home mortgage originations increased 4.1% in 2025, the first annual gain in four years, though activity is still 65% below the 2021 record. High-income borrowers accounted for 85.2% of loans.
Mortgage Rates Rise as Treasury Yields Surge Post-Fed Decision
US mortgage rates increased to 6.78% following the Fed's rate decision, as long-term Treasury yields advanced. The gap between mortgage rates and Treasuries narrowed, indicating pressure from bond markets rather than mortgage-specific issues.
2027 Social Security COLA Estimate Slashed to 3.7%, Reducing Benefit Payouts by $16.6 Billion
The projected 2027 Social Security cost-of-living adjustment has been reduced to 3.7%, down from 4.7%, trimming estimated benefit increases by $16.6 billion annually.
Social Security COLA Seen at 3.8% in 2027, Adding $63B in Benefits
A 3.8% COLA for 2027 would boost Social Security payouts by $63 billion, but taxes and Medicare costs could cut the net benefit.
Social Security COLA Plan Could Halve Deficit but Offers Only Two-Year Extension
A fixed-rate COLA proposal could halve Social Security's 75-year deficit but extends solvency by only two years. AARP opposes the PROMISE Act's fast-track process.
August SSI Payments Shift to July, $5.4 Billion in Play
August Supplemental Security Income payments of $5.4 billion will be issued on July 31, shifting the schedule due to a weekend. The move alters spending patterns and retail data timing.
SSI Payment Shift: August Disbursement Moved to July 31
August SSI payments of $5.4 billion will be issued July 31, resulting in two payments in July and none in August. Investors should watch for volatility in cash-flow data.
Student Loan Defaults Surge to Record High, Credit Tightening Blamed
U.S. student-loan defaults have reached a record high, with over 9.5 million borrowers in default, highlighting a tightening credit environment rather than banking turmoil.
August SSI Payout on July 31 to Inject $5.4 Billion into Retail Sector
August's SSI payment arrives a day early on July 31, shifting $5.41 billion in benefits and potentially boosting retail sales for that day.
Consumer Sentiment Dips to 2023 Low, Yet Retail Sales Hold Steady
Economic pessimism among Americans reached 61% in July, the highest since December 2023, yet June retail sales grew 6.7% year-over-year, with consumer staples leading market gains.
Social Security COLA Forecast Steady at 3.8% Amid Easing Inflation
The Senior Citizens League keeps its 2027 COLA forecast at 3.8%, with June CPI-W inflation at 3.5%, potentially raising average monthly benefits by $73.62.