While the omicron variant and related surge in Covid-19 infections dented economic activity in the final weeks of 2021, there was little effect on wealth in the quarter as the S&P 500 rose to new highs. More recently, stocks have slid on concerns about the economic impact from Russia’s invasion of Ukraine.
Meantime, mortgage rates have risen to levels not seen since 2019, which could eventually lead to a cooling in the rapid price gains seen in the housing market. In an effort to tame inflation, the Fed next week is expected to raise interest rates for the first time since 2018. Not everyone has benefited from the surge in home and equity prices. Survey data indicate just a little more than half of Americans own stocks, and millions of Americans rent. Separate data out Thursday showed rent of primary residence climbed in February by the most since 1987.