Shelter Six:  Strong Jobs Report Boosts Economic Recovery

August 10, 2020 by · Leave a Comment 

Employment figures again came in stronger than expected with the economy adding a massive 1.8M jobs in July (1.5M had been forecasted).

The Unemployment Rate dropped from 11.1% to 10.2%.  Average Hourly Earnings increased and were 4.8% higher than a year ago.

According to Black Knight, the average-priced home is now the most affordable it’s been since late 2016, despite home prices rising for the last 97 straight months.

Buying power is up 10% over last July, with buyers able to afford nearly $32K more home than they could last year.

The number of mortgages in forbearance dropped by 101K last week to 7.5% of all mortgages (4M total loans), according to Black Knight’s August 7th report.

A big reason for the drop is that most forbearance plans were initially set up for 90 days and a large number are expiring now at the end of each month (500K at end of July).

Rate Update

Mortgage rates slid lower again hitting an all-time low last week.  30-year rates continue to be under 3% for those who qualify for the best terms.

This Week

The Consumer Price Index will come out on Wednesday with Retail Sales released on Friday.