The new Omicron variant of COVID-19 shook up markets this week. Stocks dropped and bonds rallied, helping mortgage rates remain low.

Fed Chair Jerome Powell’s testimony before Congress this week has markets concerned the Fed may raise rates sooner than expected in 2022.

The labor market continues to recover. Unemployment claims remained down last week, and continuing claims fell to a pandemic low.

Case Shiller reports home price gains slowed down for the first time since May 2020, but year-over-year prices were still 19.5% higher in September.

Pending home sales rebounded sharply in October, despite rising mortgage rates. Signed contracts on existing homes were up 7.5% from September.

Construction spending rose moderately in October, though spending fell 0.8% for single-family homes and 0.1% for multi-family projects.