Some of the items we want to look at that impact the housing market and buyer’s willingness and financial ability to purchase homes!
Workin’ 9 to 5, What a way to make a livin’.” (Dolly Parton) These past weeks have shown more and more people working 9 to 5 and home loan rates didn’t like it.
Even though this is good news for more people who are looking for work, it impacts loan rates and thus impacts buying power.
First the ADP Report on Wednesday showed 224,000 private jobs created, well above the 184,000 expected.
Then on Friday, the Bureau of Labor Statistics (BLS) Jobs Report showed 250,000 job creations in October, well above expectations.
Within that report, Hourly Earnings (wages) rose 3.10% year over year — the highest rate since April 2009. The pickup in wages is inflationary and this added to the uptick in bond yields.
Bottom line — good news, like this week’s reading on jobs and wages, are bad news for bonds and home loan rates. However, when you consider the strong economic backdrop coupled with still historically low rates — today is a great time to purchase a home.
The Federal Reserve meeting ends Wednesday with the release of the Fed’s monetary policy statement at 2:00 p.m. ET. There is very little chance of a hike to the short-term Fed Funds Rate, but the Fed’s remarks in the statement could be a market moving event.
We will keep you posted in the next few weeks coming of important updates!