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Labor Market Rebounds {Market Update} January 22nd

Labor Market Rebounds {Market Update} January 22nd
January 22, 2018 abryant

Market Report - American Family Funding

 

I read somewhere that when someone is about to quote a bogus fact or statistic that they preface it by saying, “I read somewhere”.

I want my children to have all the things I couldn’t afford. Then I want to move in with them.

My password is ********* How many asterisks do you use for your password?

Rule #1 during arguments: If you’re losing, start correcting their grammar.

 

Now The Market Update . . .

 

Jobless claims plunged to the lowest level since 1973 this week, the biggest drop since April 2009. Labor market strength can pressure rates higher.

According to a recently released Fed report, the economy and inflation expanded at a modest-to-moderate pace from November to the end of 2017.

Inflation, which pressures interest rates to move higher, is not increasing across the U.S. consistently. West coast metro areas are showing higher inflation.

 

Although homebuilder confidence was down slightly in January, it’s still strong. Builders’ biggest concerns remain costs of material and labor shortages.

New housing starts fell more than expected in December. However, the moderation is likely to be temporary amid strong demand for housing.

Mortgage purchase applications jumped 4.1% last week, and volume rose 5.6% over last year. Speculation is that consumers fear rates may be increasing.

 

The early bird may get the worm, but the second mouse gets the cheese in the trap.

 

This week’s potential market moving reports are:

Tuesday, January 23rd – Richmond Fed Manufacturing Index

Wednesday, January 24th – MBA Mortgage Applications, FHFA HPI, Existing Home Sales

Thursday, January 25th – First Time Jobless Claims, New Home Sales

Friday, January 26th – Durable Goods Orders, GDP