Good morning,
Here is an interesting clip about some good news in the economy. While it is too early to call the recession over, these positive signs are an indication that the end is coming.
With our local economy being fairly robust (As compared to other parts of the State and Country) and the stability that has come back into the banking sector, for our local clients/homebuyers, the largest looming concern is “Will I have a job in 6 months?”
I hope that this is the beginning of more and better to come.
The good news from an economic and stock market perspective is that the July headline nonfarm payroll loss was considerably less than expected - which, on the other hand, was definitely bad news as far as the near-term prospects for lower mortgage interest rates is concerned.
The Labor Department reported employers cut 247,000 jobs in July, far less than the 320,000 most economists had projected. The job loss in July represents the slowest pace of job destruction since August of 2008. With fewer workers being laid off, the national unemployment rate eased to 9.4% in July from 9.5% in June - marking the first time the jobless rate has fallen since April of last year.
Boiling all this economic double talk down to its "bare essence", here is the core "so what" factor from today's labor market report. While it is true that employers cut fewer jobs in July than at any other time since last summer, unemployment remains stubbornly high, which means consumers will likely remain very conservative with their spending. Since consumers drive more than 80% of all domestic economic activity the pace of future economic growth will remain extremely anemic - a condition that will significantly limit the velocity of increase for mortgage interest rates over the foreseeable future.
Have a great day,
TurnKey Mortgage Solutions
Mike & Dave
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