Florida mortgage rates improved moving into last week and are holding steady as I write this update.
There are a few key economic reports in store for this week, the biggest likely being Friday’s September Jobs Report. We will also see Consumer Confidence numbers released. It’s my belief that the economy ultimately goes the way of consumer sentiment – so watch for these numbers.
The Jobs Report for August showed a less than stellar number of 216,000 jobs lost for the month, with prior months revised to show an additional 50,000 jobs lost.
In addition, the last report showed that the Unemployment Rate for August jumped to the highest level in 26 years, at 9.7% from July’s 9.4%. This is more than double the rate of unemployment from just two years ago and significantly higher than the 5.9% average during the past 40 years.
Jobs Report Number: What to Look For
Typically, the Unemployment Rate portion of the Jobs Report is often seen as more reliable than the job loss numbers since it is an actual survey, where about 60,000 households are contacted – so this is a particularly important element of the report, as we watch to see signs of an improving economy.
Remember – as the economy improves, mortgage rates increase. It’s an ironic yet true piece of financial information to keep mindful of. More on this below…
Also this week, we have a read on Consumer Confidence coming on Tuesday, while Thursday brings the Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) Index, found within the Personal Income Report. Thursday will also bring another weekly Initial Jobless Claims Report, just ahead of the Labor Department’s big Jobs Report coming on Friday.
It will most certainly be a full week of news, particularly as the aforementioned tension in the Middle East continues to simmer. There is a meeting scheduled for this Thursday with representatives from six nations to discuss this situation further.
Keep this in mind: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 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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