The Bureau of Labor Statistics reported last June that just 80,000 jobs were created, with 84,000 private job gains and 4,000 government job losses. Additional revisions to numbers reported in April and May added an additional 1,000 jobs lost. These numbers show an average of just 75,000 job creations in the second quarter of 2012 as opposed to the 225,000 jobs from the first quarter.
The unemployment rate continued to hold steady at 8.2% along with the Labor Force Participation Rate (LFPR) which also was unchanged at 63.8, a 31-year low. It’s important to remember that weak economic news typically causes money to flow out of Stocks and into Bonds which helps both Bonds as well as home loan rates to improve. The important point to take away from the recent market news reports is that now continues to be an excellent time to purchase or refinance a home as home loan rates continue to remain near historic lows.
The Fed will release the Meeting Minutes from it’s last Federal Open Market Committee meeting this coming Wednesday. The Weekly Initial Jobless Claims report will be coming this Thursday – last week’s fall of 14,000 was the first fall below 380,000 since May. To close out the week, the Consumer Sentiment and Producer Price Index reports will be coming Friday.
As the summer kicks into high gear, volumes tend to slow down on Wall Street as traders and investors take vacations. Slowed trading volumes tends to lead to magnified highs and lows. The good news from the recent market news reports is that because of how home rates, it is a good time for a new home purchase or a refinance.
Graph Data Source: Haver Analytics courtesy of www.bloomberg.com.