Jobs Data on Target
This week, investors were focused on Friday's
monthly Employment report. A high degree of
volatility preceded the report, but the net result
of the large daily movements was just a small
increase in mortgage rates for the week.
Against a consensus forecast of 165K, the economy
added 175K jobs in May. There were slight downward
revisions to the figures from prior months. The
Unemployment Rate unexpectedly increased to 7.6%
from 7.5%, but this was entirely due to additional
people entering the labor force. As a reminder, the
Unemployment Rate measures the percentage of people
who want to work but are unable to find a job. If
the number of jobs holds steady, and more people
decide that they want to work, the Unemployment Rate
goes up. In short, there were few surprises in this
Given the influence of labor market data on the
Fed's bond buying program, the level of daily
volatility both ahead of the Employment report and
following its release was extremely high. Weaker
than expected labor market indicators from ADP and
Jobless Claims caused investors to position for a
shortfall in the Employment report, pushing mortgage
rates a little lower ahead of the data. When the
results essentially matched the Wall Street
consensus, mortgage rates gave back the improvement.
The middle of the road labor market data provides
little guidance for investors trying to determine
when the Fed will begin to scale back its bond
purchases. High levels of volatility are likely to
continue ahead of the next Fed meeting on June 19.
Your clients can now get the
to purchase their next home!
The NC Home Advantage Mortgage
offers competitive interest
rates along with down payment
assistance up to 3% of the loan
amount at 0% interest.
The down payment does not need
to be repaid unless the home is
sold, refinanced or transferred.
Better yet, the down payment is
completely forgiven at year 15
and reduced by 20% a year in
years 11 through 15.
Client is buying a new or
existing home in North
The home is principal
residence and is
occupied within 60 days
Annual income does not
exceed $85,000. This
is not household income,
ONLY income of the
They can own another
A pre-approval is required
Call today for more information
or to set up an appointment and
learn more about this great
program that will boost the
confidence of your buyers.
VIP cell (919) 414- 4430