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Not too hot. Not too cold. Just right

By
Mortgage and Lending with Watermark Capital NMLS #311662

 

 

Not too hot. Not too cold. Just right. While Goldilocks from the famous children's story may have been referring to porridge, the sentiment also applies to the Jobs Report for March. Read on for the details.

The Labor Department reported that 192,000 jobs were created in March, as much of the country thaws out from the extremely harsh winter weather. This was in line with expectations, and it's a strong number given the amount of job creations reported in recent months. In addition, the figures for January and February were revised higher by 37,000 jobs.

The Unemployment Rate ticked up to 6.7 percent from 6.6 percent, while the more important Labor Force Participation Rate (LFPR) rose to 63.2 percent from 63 percent. Though it's good that the LFPR increased, it is still near 35-year lows. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery.

In housing news, CoreLogic reported that home prices (including distressed sales) rose by 12.2 percent from February 2013 to February 2014. This represents 24 months of consecutive year-over-year increases. In addition, from January to February, prices were up 0.8 percent. However, despite the rosy gains, prices are still nearly 17 percent below their peak set in April 2006. The big gains from 2013 are starting to cool and return to more normal historical levels.

What does this mean for home loan rates? The Fed is now purchasing $30 billion in Treasuries and $25 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing. The Fed will be closely watching upcoming reports, especially in the labor and housing markets, as it evaluates the timing of further tapering. These decisions will continue to impact our economy and home loan rates as we move ahead this year.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

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New American Funding 
11988 El Camino Real, Suite 150
Del Mar, CA 92130

 

Cell: 858-342-8659
Direct: 858 304-1205
Fax:     949 751-4290
Email: matt.brady@nafinc.com
Web:   
www.newamericanfunding.com

 

 

Posted by

Matt Brady

Branch Manager, NMLS ID#311662

(858)342-8659 cell |

matt.brady@watermarkhomeloans.com  
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     

 

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