“What a feeling.” (Irene Cara) Job growth eased in July, but a closer look at the report shows that job seekers shouldn’t be too alarmed.

Non-Farm PayrollsNon-farm payrolls rose by 157,000 new jobs in July, below the 190,000 expected, the Bureau of Labor Statistics reported. However, the figures for May and June were revised higher by a total of 59,000 new jobs. The unemployment rate also fell to 3.9 percent. For the past three months, job growth has averaged 224,000 compared to 195,000 in the same period in 2017. Hobby and retail toy employment fell by 32,000 jobs in July, largely due to the closing of Toys R Us, which hurt headline non-farm payrolls and could be a one-off number. Overall, the labor market continues to produce solid numbers.

Home prices rose steadily across the nation in May. The S&P CoreLogic Case-Shiller 20-City Home Price Index rose 6.5 percent from May 2017 to May 2018. This was in line with expectations and just below the 6.7 percent recorded in April. On a monthly basis, home prices were up 0.7 percent from April to May.

The Fed met and left its benchmark Fed funds rate unchanged, as expected. This is the rate banks use to lend money to each other overnight, and it does not directly impact home loan rates. The Fed noted that economic activity is growing at a strong rate and the labor market continues to strengthen.

If these strong signs for the economy continue, stocks could benefit at the expense of mortgage bonds and the home loan rates tied to them. However, many factors impact both stocks and bonds, so it’s important to keep an eye on the overall picture. For instance, low inflation is typically good news for fixed investments like mortgage bonds, and the annual Core Personal Consumption Expenditures edged lower to 1.9 percent in June. This was down from the 2 percent recorded in May and below the Fed’s 2 percent target range.

For now, home loan rates remain attractive and near historically low levels.

After last week’s full calendar, the week ahead features just a handful of reports.

  • On Thursday, we’ll get a read on wholesale inflation via the Producer Price Index.
  • Also on Thursday, weekly Initial Jobless Claims will be released as usual.
  • The Consumer Price Index will be delivered Friday.

If you or someone you know has questions about home loan rates, please give me a call. I’m always happy to help.

Related Articles

There's no place like home, just ask Mackenzie Holowach. When the pandemic hit, Holowach was transferred to assist at a COVID testing site and later worked in a New Jersey ICU. Changing clothes before entering the home she shared with her sister became her norm and Holowach even spent time living…
Read More of the post Stories from the Frontline

Homebridge Launches Office of Diversity and Inclusion as Part of Commitment to Employees, The Housing Industry, And Customers Homebridge announced their newest commitments to diversity, inclusion and empowerment for borrowers and employees of the company. As of September 15th, 2020 – Homebridge has committed to the following initiatives as it…
Read More of the post Homebridge Launches Office of Diversity and Inclusion

Fall is here and as the leaves change colors you may be asking yourself, what would make my home the one I’ve always dreamed of? Maybe an inground pool, a backyard deck or even a sunroom? Lavish changes like these can certainly make a difference in how you feel about…
Read More of the post Top 3 Home Renovations and How to Achieve Them

Many homebuyers look for the “perfect” home rather than the right home. If you’re shopping for a new home to build equity and set down roots for you and your family, think about expanding your search to include the often-overlooked fixer-uppers. Combining your purchase loan with a renovation loan can…
Read More of the post Why & How to Buy & Reno a Fixer Upper

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.