Guest Post – Tradition Mortgage’s Weekly Update August 10, 2015
“Working 9 to 5. What a way to make a living.” Dolly Parton. A heavy economic calendar culminated the week with July’s Jobs Report singing of work for many Americans. The housing market showed strong gains as well.
Employers added 215,000 new jobs in July, while the figures for May and June were revised higher by a total of 13,000 jobs. Retail, health care and leisure led the pack with job opportunities. The unemployment rate held on to its seven-year low, which is also good news. While the average workweek increased, growth rate of wages remains at the lowest levels on record.
Home prices jumped in June. Research firm CoreLogic reported that home prices rose 6.5 percent, marking the 40th consecutive month of year-over-year gains. While prices are still down from the peak in April 2006, they are expected to continue to rise. CoreLogic cited pent-up demand, affordability and a more robust labor market for the gains.
Data continues to show that the job market, housing sector and economy overall are improving, even though inflation remains below the Fed’s 2 percent target. The big question now is whether or not our economy has improved enough for the Federal Reserve to begin raising its benchmark Fed Funds Rate (the rate banks use to lend each other money overnight). September’s Federal Open Market Committee meeting provides the next opportunity to see what the Fed will do.
For now, home loan rates remain near historic lows.
NMLS # 761955
Direct 952.252.4488 / Cell 612.716.9999 / Fax 952.252.4489
Tradition Mortgage LLC
NMLS # 286998
4350 Baker Rd Suite 190 / Minnetonka, MN 55343 / www.TraditionWest.com