Last week, we saw a continuation of a Florida home loan market that was still trying to find its sense of direction. As of today, we’re starting to see that direction solidify… and it’s moving up. In fact, signs might be starting to point to higher overall mortgage interest rates as we move into the new year.
November’s Massive Job Losses Still Big News Today
As I said in a post last week, November’s marked the largest single-month unemployment increase since December 1974 and put the year-to-date job losses at 1.9 million workers. Government reports show that the U.S. economy shed 533,000 jobs last month and the nation’s Unemployment Rate surged to just under 7%.
Typically, such an increase in job losses would have pushed stock prices and Florida mortgage rates down. However, stocks and rates did not fall — in fact, they actually rose on Friday. This is because even though the job loss story received the most mind share last week, it wasn’t the most important issue on the national plate. Tho prize for the most important story of last week goes to the “official” announcement that the United States is in a recession… duh!
Although most of us knew this already, the “official” announcement signaled recognition that “bad economic data” is not only acceptable, but par for the course in light of our present economic condition.
My point here is this. Florida home loan interest rates moved up on Friday because markets basically said “yeah, so… we knew that already” when the job numbers came out. They had already heard the “official” recession report – so the jobs info was – in essence -already baked into the numbers.
What Does This Mean for Florida Home Loan Rate Shoppers?
The news is not great. Bad economic information typically pushes mortgage rates lower. However as far as the near future is concerned, we won’t see this happening. Not until the powers that be signal that we’re clear of this recession (yes – the one that we’ve been in since 2007).
For the week moving forward – there really isn’t anything on the docket that stands as a catalyst – either up or down, save news of more federal assistance and any reports on expectations for the US economy. Do keep an eye on retail sales numbers as they begin to trickle in, as stronger than expected figures will most likely pull Florida mortgage rates northward. This also holds true for the November retail sales data we’ll receive on Friday.
Whatever the case, remain seated with all hands inside your vehicle. It’s going to be a wild ride!
(Image courtesy: Wall Street Journal Online)
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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