NATIONAL Housing Market Update: Unemployment Improves Slightly
Unemployment Improves Slightly:
U. S Bureau of Labor and Statistics reported that the national Unemployment Rate dropped unexpectedly from 9.2% to 9.1%.
U.S employers hired more workers in July alleviating immediate concerns over another potential slowdown in the U.S economy. 117,000 jobs were added, far exceeding the 85,000 forecast by analyst. Adding to the positive report was an increase in wages.
Most economists believe that we need to see a net gain of 200K jobs each month to materially move the Unemployment Rate downward, but the data in this report was welcome news.
Housing demand is more closely tied to employment levels than any other factor (even mortgage rates), so any improvement in this data is welcome news for the housing industry.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +131 basis points last week which helped to move mortgage rates lower from last Friday to the prior Friday. We closed at our best levels of 2011. The gains were primarily due to the market's reaction to the debt ceiling deal being passed as well as weaker than expected economic data and heightened concerns over Europe. We pulled back from our best levels on Friday in reaction to the stronger than expected Unemployment data.
Want to know how much "house" you qualify for with today's interest rates? Give Hal a call!
Senior Loan Officer
Office: 800-333-3004 x 3441
10306 Eaton Place
Fairfax, VA 22030