Last Week in Review: February job creation surges while home prices continue to rise.
Forecast for the Week: Investors turn to global news headlines in an empty week of economic data.
Last Week in Review
“Give me a job, give me security. Give me a chance to survive.” Styx. February job creation was something to sing about. But lackluster wage growth might not provide the financial security workers hope for.
In February, 242,000 jobs were created, well above the 190,000 expected, the Labor Department reported. Plus, December’s and January’s numbers were revised higher. The Labor Force Participation Rate also ticked up to 62.9 percent, the highest since January 2015, while the Unemployment Rate remained at 4.9 percent (which is near what the Fed considers full employment).
Despite this positive news, wage growth is still a concern, falling -0.1 percent from January. Year-over-year wage growth rose a modest 2.2 percent from February 2015 to February 2016.
In housing news, January home prices, including distressed sales, rose 6.9 percent from January 2015, according to CoreLogic, a leading provider of property information and analytics. On a month-over-month basis, prices were up 0.5 percent from December 2015 to January 2016. Looking ahead, CoreLogic has forecasted a 5.5 percent increase from January 2016 to January 2017.
Finally, home loan rates continue to hover just above all-time lows, which is great for homebuyers and homeowners considering a refinance. (Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates ticking fractionally higher.)
- 30-year fixed-rate mortgage (FRM) averaged 3.64 percent with an average 0.5 point for the week ending March 3, 2016, up from last week when it averaged 3.62 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent. )
If you or someone you know has any questions about home loan products and rates or refinancing, please don’t hesitate to email or call me at firstname.lastname@example.org.
Forecast for the Week
It’s a quiet week in U.S. economic data releases. Investors and traders will take their cues from other global headline news.
• Weekly Initial Jobless Claims will be released Thursday, as usual.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result.
When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.
By: Michael Borodinsky
Vice President/Regional Builder Branch Manager | Caliber Home Loans
Call Michael: 732-382-2654
Email Michael: Michael.Borodinsky@caliberhomeloans.com
Follow Michael on Twitter: @mikeborodinsky
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