Shelter Six:  Strong Jobs Report Boosts Economic Recovery

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.

August 10, 2020 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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