Economic News...was a little weaker than expected. The ISM Manufacturing Index and Factory Orders results were mixed. While the headline figures were tepid there was some positive data hidden in the underlying numbers. Employment stats for the week were the real market driver. On Wednesday, the ADP Employment Report results predicted a weaker Employment Situation in Friday’s release. This came true with today’s announcement of 88,000 jobs created versus the 193,000 expected. The unemployment rate trended lower to 7.6% but the labor force participation rate dropped from 63.5% to 63.3% which is a level not seen since 1979. Is the Bay Area housing market feeling any pullback from weaker data lately? Not hardly, as new and crazier stories about multiple offers, international buyers, all cash and crazy terms are shared around the “water cooler” on a daily basis.
Mortgage Markets...Today’s Employment Report sent the equity markets spinning lower which is benefiting interest rates. 10 Year Note closed trading at 1.710% versus 1.855% versus last week. Only a couple of weeks ago we witnessed the yield passing the 2.00% mark.
Next Week’s Market Moving Reports...Wednesday: FOMC Minutes Thursday: Jobless Claims Friday: Producer Price Index, Retail Sales, Consumer Sentiment
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.
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