Manufacturing and construction are still going strong, and while that lowers the
chances for a recession, it means higher prices will continue for most basic
goods.
With the labor market still delivering raises to workers, people will be able to
better handle higher mortgage rates, buying time for the home industry to find a
balance.
A supply chain broken by the pandemic is slowly getting back on its feet, and improvements will continue rippling through the markets well into the new year.
Government adjustments tied to 2022 price increases will boost household incomes by about $200 billion, fueling the economy and staving off a recession for at least a few more months.
After spending most of this year building their regulatory cushions in anticipation of rule changes, lenders are primed to start putting excess capital to work.