Shelter Six:  Strong Employment Report Pushes Rates Higher

After a disappointing May where less than 100K new jobs were added, the economy added a powerful 224K jobs in June, well above the consensus forecast of 160K.

The Unemployment Rate unexpectedly increased from 3.6% to 3.7%, but this was primarily due to additional people entering the labor force, which is a sign of strength.

June Average Hourly Earnings, an indicator of wage growth, fell slightly short of expectations and were 3.1% higher than a year ago.

The strong employment figures pushed rates higher because the outlook for inflation was raised while the expectation of Fed interest rate cuts this year was reduced.

Shelter’s SmartVest program allows an experienced real estate investor to buy up to 15 financed investment properties without income documentation or a debt ratio calculation.

SmartVest loan qualification is based on the property’s cash-flow.  The program also allows an interest-only feature as well as investors closing in the name of an LLC.

Rate Update

Last week was a light week with the July Fourth holiday.  Rates fell slightly early in the week but spiked up sharply on Friday after the strong Employment Report.

This Week

The JOLTS report is due out on Tuesday, the minutes from the June 19th Fed meeting on Wednesday, and the Consumer Price Index (CPI) on Thursday.

July 8, 2019 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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