IN THIS ISSUE
Last Week in Review: May was a strong month for job gains, while home prices continue to rise across the country.
Forecast for the Week: Look for news on wholesale inflation and consumer spending. Plus, headlines from overseas or the Fed could move the markets.
LAST WEEK IN REVIEW
"Don't rain on my parade." Barbra Streisand.
Record storms across the country didn't stop job growth from surging in May.
Employers added 280,000 new jobs in May, above the 225,000 expected, as the labor markets continue to improve. After a brief falloff in March, job creations in May were well above the average monthly totals over the last year. Upward revisions to previous months also added 32,000 more jobs.
Job gains were seen in construction, retail and healthcare, while the mining sector continued to shed jobs due to the decline in oil prices. The unemployment rate ticked up to 5.5 percent from 5.4 percent, as more Americans returned to the job market to actively look for work.
While the strong Jobs Report is good news for our economy overall, the positive economic data caused interest rates to move higher . As a result, Mortgage rates rose above 4%, the highest level thus far in 2015.
In housing news, research firm CoreLogic reported that annual home prices, including distressed sales, rose 6.8 percent from April 2014 to April 2015. This marks the 38th consecutive month of annual increases in home prices nationally. In addition, prices were up 2.7 percent from March to April, but they are still 9 percent lower than the peak back in April 2006.
The key takeaway is that home loan rates are still historically low, making now the most opportune time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients. I can be reached at firstname.lastname@example.org.
FORECAST FOR THE WEEK
Look for just a few key reports, all in the second half of the week. Plus, news from overseas and any opinions from the Fed could also impact the markets.
- Economic data doesn't begin until Thursday with Weekly Initial Jobless Claims and Retail Sales.
- Friday's data includes the Producer Price Index, which measures inflation at the wholesale level, and the Consumer Sentiment Index.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.
ECONOMIC CALENDAR (WEEK OF JUNE 8-12)
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: @mikeborodinksy