“There are decades where nothing happens, and there are weeks where decades happen.”
First, I want to express my shock and quiet despair over the events we’ve seen in Dallas this weekend. The shock comes from this actually happening in Dallas. It is a reminder that tragedies don’t just happen somewhere else. If anything, the Dallas police force has done a great job with handling this event and in protecting and serving the community. They are the best and are a model for the rest of the country.
I offer my prayers and express my condolences and sincere sympathy to the families whose loved ones were killed and injured.
The Bureau of Labor Statistics reported that 287,000 jobs were created in June, much higher than the 175,000 that was expected. In spite of the better than expected number, it is more of an offset to May’s revision lower to just 11,000 jobs created. Looking from April to June, job growth has averaged 147,000 per month, well below the five-year high of 282,000 new jobs per month in the fourth quarter of last year.
Also, we saw Unemployment numbers rise to 4.9 percent while average hourly earnings increased by just 0.1 percent.
In housing, CoreLogic reported home sales prices including distressed sales increased 5.9 percent from May 2015 to May 2016. Home prices also rose 1.3 percent from April to May. CoreLogic predicts that home prices will increase by 5.3 percent year-over-year in May 2017. This may indicate that housing will remain a bright spot in our sluggish and uncertain economy with mortgage interest rates at historic lows.
Mortgage Bond Prices
Mortgage bonds remain near all-time highs due to significant global concerns over the Brexit fallout. This means mortgage home loan rates remain near record lows.
A pretty good rule of thumb is weak economic news normally causes money to flow out of stocks and into bonds, helping bonds and home loan rates improve. In contrast, strong economic news generally has the opposite result. When you see bond prices rising, it means home mortgage loan rates are improving. When bond prices are declining, mortgage home loan rates are getting worse.