Shelter Six:  Economy Continues to Be Strong and Add Jobs

1. The economy added 157K new jobs in July and has now gained an average of 215K per month so far this year, up from 184K per month this time last year.

2. The Unemployment Rate decreased from 4% to 3.9%, matching expectations.

3. As expected, the Fed did not increase short-term rates at Wednesday’s meeting but did note that household spending and business investment are growing “strongly.”

4. Investors expect that the Fed will raise the Federal Funds for the third time this year at the next meeting on September 26.

5. Shelter’s new “Smart Self” program is for self-employed borrowers or employees who primarily receive tip income and allows income to be calculated from bank statements rather than tax returns.

6. Smart Self requires only 10% down with no PMI, goes down to a 620 credit score and up to a 50% debt ratio, and is very friendly for a cash-out refi, multi-unit or investment property, or closing in the name of an LLC.

Rate Update

With no significant surprises last week, mortgage rates were mostly flat and ended the week slightly higher.

This Week

The JOLTS report is due out on Wednesday and the Consumer Price Index (CPI) on Friday.

August 6, 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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