Shelter Six:  Unemployment Drops to 3.9%

1. The economy added 164K jobs in April.  Although 190K were expected, upward revisions added 30K jobs to results for prior months bringing net gains very close to expected levels.

2. The unemployment rate declined from 4.1% to 3.9%, the lowest level since December 2000.

3. The decline in Unemployment was mostly due to workers leaving the labor force rather than job gains, so it was not necessarily viewed as a sign of strength.

4. As widely expected, the Fed made no change to the Federal Funds rate on Wednesday and the meeting caused little change in investor expectations for the pace of future rate hikes.

5. The Census Bureau reports that the Homeownership Rate held steady at 64.2% in the 1st Qtr of 2018, unchanged from the prior quarter and still at the highest level since 2014.

6. The Homeownership Rate is up from 63.6% in the 1st Qtr or 2017 and is now higher than last year for the fifth consecutive quarter.

Rate Update

Despite a wide range of major economic news, it was a very quiet week for mortgage rates, which ended the week nearly unchanged.

This Week

The JOLTS report, which measures job openings and labor turnover rates, will come out on Wednesday while the Consumer Price Index (CPI) will come out on Thursday.

May 7, 2018 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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