Upswing In April 2013 Jobs Report Signals Good News For Real Estate

The Bureau of Labor Statistics released its monthly Non-farm Payrolls and National Unemployment Rate for April last Friday. These two reports are collectively called the Jobs Report.

165,000 jobs were added in April, while the unemployment rate dropped from 7.60 percent in March to 7.50 percent in April. 673,000 jobs have been added since January. Jobs were added in employment sectors including business and professional, health care and eating and drinking establishments.

The main impact of the jobs report on home sales and mortgage lending is the ability of would-be home buyers to qualify for mortgage loans.

Long term unemployment and under-employment has worked against consumers wanting to buy homes when interest rates and home prices hit significant lows.

 Falling Long Term Unemployment Numbers Help New Home Buyers Buy Homes

Long-term unemployment (workers unemployed for 27 weeks or more) fell by 258,000 workers to 4.4 million in April. The share of long term workers among all unemployed fell by 2.2 percent to 37.4 percent of unemployed workers.

Since January, the number of long-term unemployed has decreased by 687,000 workers and 3.1 percent. Gaining employment is a plus for the economy and for households facing financial stress due to unemployment.

Another significant data set in terms of U.S. jobs measures workers who are working part-time, but who want to work full time. This sector increased by 278,000 in April to 7.9 million.

February and March 2013 Non-farm Payrolls numbers were revised upward. In February, jobs added were changed from 268,000 to 332,000. In March, jobs added were revised from 88,000 to 138,000. This adjusts the number of jobs added for February to March by an additional 114,000 new jobs.

Federal Reserve Bond Purchase Point To Continued Low Mortgage Rates

The Federal Reserve is continuing its program of quantitative easing (QE) by buying $85 billion in bonds and mortgage backed securities (MBS) monthly.

Reducing or eliminating QE would lessen the demand for bonds and MBS; when bond and MBS prices fall, mortgage rates usually rise. Lower mortgage rates can help offset rising home prices and allow more consumers to buy homes.

While home prices are gradually increasing, mortgage rates are still low. This helps moderate-income home buyers with affordability, but these conditions won't last indefinitely.

In some regions, such as the West, available homes and land are in short supply, which is driving up home prices. This trend is helping home owners, and potentially home sellers, gain higher sales prices for their real estate. Overall, increasing the number of jobs is positive for the economy.

Contact your trusted mortgage lender for a personalized mortgage interest rate quote and to learn more about affordable home loan options.

Mortgage Rate Risk Ahead Of Friday Morning's Jobs Report

Friday morning, the Bureau of Labor Statistics will release its Non-Farm Payrolls report. More commonly called "the jobs report", Non-Farm Payrolls is a monthly market-mover.

Depending on the strength -- or weakness -- of the data, mortgage rates will change. Perhaps sharply. Unfortunately, we can't know in which direction.

If you're actively shopping for a mortgage in Atlanta , therefore, today may be a prudent day to lock a mortgage.

The job report's connection to mortgage rates is straight-forward. As the number of U.S. citizens earning paychecks increases, reverberations are felt through the economy.

First, higher levels of income are tied to higher levels of consumer spending and consumer spending accounts for the majority of the U.S. economy. More working citizens, therefore, builds a larger overall economic base.

Next, as the overall economic base grows, businesses produce and sell more goods, necessitating the hiring of additional personnel and the purchase of more raw materials -- both positives for the economy.

And, lastly, as more paychecks are written, more taxes are paid to local, state and federal governments. These taxes are often used to fund projects and purchase goods and services which, in turn, grow the economy as well.

Tying it all together, the health of the U.S. economy is a major factor is setting day-to-day mortgage rates across Georgia. This is why rate shoppers face risk with tomorrow's Non-Farm Payrolls report.

Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered 3.9 million of them and, Friday, analysts expect to see another 100,000 jobs created in June. If the actual number of jobs created exceeds this estimate, look for mortgage rates to rise. 

If the actual number of jobs created falls short of 100,000, mortgage rates may fall.

The government releases Non-Farm Payrolls data at 8:30 AM ET Friday.

Jobs Report Due Friday; Mortgage Rates Expected To Change

If you're out shopping for a home this week, or trying to lock a mortgage rate, with Friday comes home affordability risk. Consider locking your mortgage rate today.

The March Non-Farm Payrolls report is due for release Friday morning and mortgage rates are expected to move. Unfortunately for the home buyers and rate shoppers of Canton , we can't know in which direction that will be.

The prudent play may be to lock your mortgage rate today.

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called "the jobs report", the release is a bona fide market-mover, month after month. 

Depending on how the March jobs data reads, FHA and conforming mortgage rates could rise -- or fall -- by a measurable amount post-release. This is because today's mortgage market is closely tied to the economy, and the economy is closely tied to job growth.

The connection between jobs and mortgage rates is basic.

More workers leads to higher levels of consumer spending nationwide and consumer spending accounts for the majority of the U.S. economy.

In addition, when more workers are paid, more taxes are paid, too. Local, state and federal governments collect more monies when payrolls are rising which, in turn, benefits projects that purchase new goods and services, and, in many cases, results in the hiring of additional personnel.

Job creation can be a powerful, self-reinforcing cycle. 

Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered half of them. Friday, analysts expect to count another 200,000 jobs created. If the actual number of jobs created exceeds estimates, look for stock markets to gain and bond markets to lose. This leads to higher mortgage rates -- especially with the Federal Reserve zeroed in on the labor market.

If the actual number of jobs created in March falls short of expectations, however, mortgage rates may fall.

Unfortunately, by the time the report is released, it will be too late to act on it. The release is made at 8:30 AM ET and bond markets are closed for Good Friday.

Mortgage Rates Expected To Rise On A Strong Job Report

With home affordability at an all-time high, buoyed by the lowest mortgage rates ever, it's been a terrific time to buy or refinance a home using a mortgage.

The good times may not last, though, so today marks an ideal time to lock a mortgage rate. Friday brings risk. Here's why.

Since 2010, weak economic conditions have been a primary catalyst for low mortgage rates in Georgia. Over the last 12 months, though, manufacturing output has been rising, consumer spending has been climbing, and business investment has increasing.

In other words, the economy is improving. However, it's the jobs market that's believed to be the economic recovery keystone. When jobs come back, analysts say, so does the economy.

Assuming that's true, a recovery may already be well underway.

According to the Bureau of Labor Statistics, the U.S. jobs market has grown for 16 straight months now, adding 2.5 million net new jobs along the way. It's one reason why the February jobs report matters so much to housing. 

Rate shoppers would do well to pay attention.

Friday, at 8:30 AM ET, the government will release its Non-Farm Payrolls report for February. Wall Street expects the report to show 210,000 new jobs were created in February, a figure slightly higher than the rolling, 6-month average for job growth. This would be a positive economic indicator.

If the analysts are correct, mortgage rates are likely to rise on the news, harming home affordability.

Furthermore, affordability could be harmed by a lot if the number of net new jobs created exceeds the 210,000 tally expected. It's not a far-fetched scenario. Wall Street's "whispers" put the actual jobs figure somewhere between 250,000-300,000. A reading lije this would cause mortgage rates to spike and would add money to a prospective monthly mortgage payment.

If the idea of rising mortgage rates makes you nervous, consider taking your nerves out of the equation. Call your loan officer today. Lock your rate ahead of Friday's Non-Farm Payrolls release.

With The Jobs Report Looming, Mortgage Rates May Rise

If you're shopping for a mortgage rate, today may be a good day to lock one down. That's because Friday morning, the Bureau of Labor Statistics will release its Non-Farm Payrolls report for August 2011.

The "jobs report" tends to have a big influence on mortgage bonds and mortgage rates in Kennesaw.

The jobs report is a monthly issuance, providing sector-by-sector analysis of the U.S. workforce. It also report the national Unemployment Rate.

Wall Street expects the August Non-Farm Payrolls data to show 75,000 jobs created in August, down from 117,000 in July; and it expects that the Unemployment Rate will remain unchanged at 9.1%.

The jobs report's connection to mortgage markets is straight-forward -- as jobs go, so goes the economy. This is because when the number of working Americans rises :

1. Consumer spending gets a boost
2. Government tax collection gets a boost
3. Household savings gets a boost

These are each good turns in a recovering economy.

For today's rate shoppers and home buyers, though, it won't be the actual number of jobs created that matter as much as how close that jobs figure is to Wall Street's expectations. If the number of jobs created exceeds the 75,000 estimate, look for mortgage rates to rise.

Conversely, if job creation falls short of 75,000 in August, mortgage rates are expected to rise.

Home affordability remains at all-time lows and mortgage rates do, too. If you've been wondering whether now is the right time to lock a rate, you can remove some risk by locking ahead of Friday's Non-Farm Payrolls release.

The report will be released at 8:30 AM ET.