Yesterday’s Jobs Report showed that unemployment has reached three-year low – what does that mean for Raleigh Home Loan Rates?
The Labor Department reported that 200,000 jobs were created in December, with 212,000 private job gains offsetting modest losses in government jobs. Adding to the positive spin of the report was the Unemployment Rate falling to 8.5% from a previously reported and upwardly revised 8.7% reading!
Overall the Jobs Report was a positive reading on the labor market. Yes, there is still a tom of people that are unemployed however the big Kevin Martini takeaway yesterday is that the trend is improving.
Folks, we need to remember, the problems in the Europe are big problems, very complicated problems & without an easy solutions…so it will take a very long time for clear resolution. And during times of global uncertainty, money will flow into the relative safe haven of the US Dollar and US Bonds – including Mortgage Bonds, which Raleigh Home Loan Rates are tied to.
This means that Raleigh Home Loan Rates should continue in their sideways trend & remain near historic lows, making now a great time to purchase or refinance a home. Let me know if I can answer any questions. My direct dial number is 919.274.3700.
The first half of the week is slow however second half of the week features several important economic reports:
• The Fed’s Beige Book will be released on Wednesday. This is a report on economic conditions from the 12 Federal Reserve District Banks around the country.
• Initial Jobless Claims will be released on Thursday. Last week’s number fell by 15,000 to 372,000 and the report signaled that the labor market could be turning the corner to greener pastures.
• Retail Sales will be released on Thursday and will be closely watched by both investors and traders. Last week, it was reported that retailers saw better-than-expected revenues for same-store sales in December, but the numbers were achieved by big discounts. Sales on Black Friday were robust, but fell off in the ensuing weeks during December. So the markets will be watching closely for the final numbers this week.
• The first look on Consumer Sentiment for January will be released on Friday.
In addition to those reports, the Treasury Department will sell a total of $66 Billion in government securities on Tuesday, Wednesday, and Thursday. Those auctions could impact the markets, depending on how they’re received. The Kevin Martini Group at SunTrust Mortgage will be watching the results – and their impact – very closely.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Home Loan Ratesimprove, while strong economic news normally has the opposite result.
No comments:
Post a Comment