Shelter Six:  Strong Employment Figures Keep Economic Momentum Moving Forward

The economy added a solid 661K jobs in August and the Unemployment Rate dropped from 8.4% to 7.9% after peaking at 15% in April.

The economy has now recovered roughly half of the 22 Million jobs lost in March and April.

August Pending Home Sales jumped 8.8% from July and 24% from a year ago to an all-time high.

The August Core PCE Price Inflation Index was only 1.6% higher than a year ago and well within the Fed’s stated 2% target.

News that President Trump tested positive for the coronavirus initially caused mortgage rates to drop slightly (bad news typically pushes rates lower).

Upbeat news around a potential fiscal stimulus package, however, caused rates to push higher (a stimulus package could put upward pressure on rates).

Rate Update

The net effect was little change as rates continue to hold steady near record lows and will most likely stay super low until good news regarding the pandemic emerges.

This Week

The ISM National Services Index is due out on Monday, the JOLTS report on Tuesday, and minutes from the September 16 Fed meeting on Wednesday.

October 5, 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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