Shelter Six:  Very Strong May Employment Report

June 4, 2018 by · Leave a Comment 

1. The U.S. added a very strong 223K jobs in May, much higher than expected.

2. The U.S. economy has now added an average of 207K jobs per month so far this year.

3. The Unemployment Rate is now down to 3.8%, the lowest level since 2000.

4. Fannie Mae’s Home Purchase Sentiment Index measures consumer confidence in the U.S. housing market and hit an all-time high in April.

5. The U.S. Energy Information Administration has forecasted gas prices to average $2.90/gallon this summer, almost 50 cents higher than last summer.

6. The higher forecasted gas prices are due to a tightening market, Iran sanctions, and other geopolitical concerns across the globe.

Rate Update

Mortgage rates dropped last week as investors bought U.S. bonds out of concern that Italy’s newly formed coalition government may eventually leave the European Union.

This Week

Factory Orders will be released on Monday, the ISM National Services Index on Tuesday, and the JOLTS Report on Wednesday.  News about Italy could also influence mortgage rates again this week.