Purchase Rates Are Best Levels of the Year

May 13, 2014 at 8:44 AM

Read between the lines. That sentiment certainly applies to the Jobs Report for April. Read on for details.

There was good news in the labor sector, as 288,000 jobs were created in April. This was well above the 210,000 expected and the largest month-to-month increase in two years. In addition, the Unemployment Rate fell to 6.3 percent, the lowest level since September 2008.

However, all was not rosy within the report. The Labor Force Participation Rate (LFPR) fell to 62.8 percent, matching a 35-year low. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery. It was also estimated that 806,000 people dropped out of the labor force. All in all, while this report shows the labor sector is improving, there is still a long way to go.

Sign Up for E-News

Also worrisome, the first read on Gross Domestic Product (GDP) for the first quarter of 2014 came in at an anemic 0.1 percent. This was below expectations and down from the 2.6 percent recorded in the final quarter of 2013. The 0.1 percent was the weakest performance in three years. This report shows that, while the worst of the recession may be behind us, the recovery is far from over.

The other major news last week came from the Fed, which announced more tapering to its Bond buying program. The Fed will now purchase $25 billion in Treasuries and $20 billion in Mortgage Bonds (the type of Bond to which home loan rates are tied) each month to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing.

What does this mean for home loan rates? Remember that weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. We saw some of this dynamic in the markets last week as Bonds and home loan rates rallied after some of the weak news that was reported. In addition, the Fed is expected to continue tapering its purchases throughout the year—but whether Bonds and home loan rates improve or worsen with further tapering remains to be seen. These are key stories to monitor as we head into the warmer months.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

This column takes a look at current mortgage rates, market trends and indexes.  Jon Lamkin is Vice President of Mortgage Lending for Guaranteed Rate, 322 Route 46 W Suite 170 • Parsippany, NJ • 07054.  He may be reached at 973.939.8661  /  jon.lamkin@guaranteedrate.com  /  www.guaranteedrate.com/jonlamkin

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

TAP Into Another Town's News:

Sign Up for E-News

Millburn/Short Hills

Senior Rabbi of B'nai Jeshurun of Short Hills Leads 50 Adults to Israel

SHORT HILLS, NJ - Congregation B’nai Jeshurun’s Senior Rabbi, Matthew D. Gewirtz, led a group of 50 adults to Israel in early November. In addition to touring, the trip included Adult B’nai Mitzvah services and discussions with local leaders on various aspects of life in Israel.

Rabbi Gewirtz began his tenure as the Senior Rabbi of Congregation B’nai Jeshurun in ...

Millburn Snowflake Parade and Red Cross Run Information

December 1, 2016

MILLBURN, NJ - The Snowflake Parade will take place on Sunday, December 4th from 1:30 p.m to 3:30 p.m. Come be apart of the Township's largest annual parade! 

Millburn Avenue will be closed from Spring Street  to Holmes Street for the parade. Holmes Street, Whittingham Terrace, and Lackawanna Place (between Essex Street and Millburn Ave) will be completely closed ...

Thank You Millburn Veterans!

November 10, 2016

Dear TAPinto Millburn/Short Hills Editor,

The Millburn High School SAVe Warriors Club wants to thank each and every veteran who joined us on Tuesday, November 8, 2016 at Millburn High School for lunch. It was truly an honor to host you, shake your hands and express our gratitude for serving our great country.

We would also like to thank Dr. Burton, Dr. Miron, Mr. Friedrich and the wonderful ...

Upcoming Events

Carousel_image_88bb2fa2fdd36f085cb2_0dad81224649a47a49d2_screen_shot_2016-11-29_at_6.09.45_pm

Sun, December 4, 10:00 AM

Millburn Free Public Library, Millburn

American Red Cross Run for the Red in Millburn; ...

Carousel_image_2f6d8e5c4e740cd98ab6_screen_shot_2016-11-29_at_3.00.22_pm

Sun, December 4, 1:30 PM

Millburn Ave., Millburn

Millburn Snowflake Parade

Carousel_image_3bd3383c6098777405f2_bokeh_tree_magic_christmas_merry_xmas_hd-wallpaper-1646961

Sun, December 4, 5:00 PM

Community Congregational Church, Short Hills

Caroling and Tree Lighting

Religions And Spirituality

Carousel_image_c20d525a95812bff361b_56974e1f719431e1e0d8_1480817210980

Tue, December 6, 11:00 AM

Millburn Free Public Library, Millburn

MMAC Empower Hour

Education

Speaker Ryan Signs Lance Bill

December 3, 2016

WASHINGTON, D.C. --- Congressman Leonard Lance (NJ-07), Vice Chair of the Commerce, Manufacturing and Trade Subcommittee, today joined U.S. House Speaker Paul Ryan as he signed off on Lance’s  Consumer Review Fairness Act.  Lance’s consumer protection legislation passed both the House and U.S. Senate and now heads to President Obama.  The legislation will allow ...

Audio: Point View's Dietze Tells Marketplace Potential Trump Tax Reforms Affect Investment Strategies

Point View Wealth Management Founder, President, and Chief Investment Strategist, David Dietze, spoke live to Marketplace's Nancy Marshall-Genzer on investment strategies in light of potential tax reform by the incoming administration:

marketplace.org

Point View Wealth Management, Inc. works with families in Summit and beyond, providing customized portfolio ...

Reeves-Reed Arboretum Holiday Countdown

SUMMIT – There’s only one week to go before the holiday festivities begin at Reeves-Reed Arboretum.  

Thursday December 8, tour five fabulous homes on the Arboretum’s annual Holiday House Tour.  Regarded as the premier holiday house tour of the region, this year’s tour showcases five elegant, splendid and inviting homes decked out in holiday finery for your ...

Millburn Resident Robbed Whilst Walking Dog; Thief Had a Handgun

November 29, 2016

On November 23, 2016 Millburn Police Officer O’Neill responded to Millburn/Blaine on a report of a robbery. The Millburn Ave resident reports walking his dog down Millburn Ave at approximately 9:20 pm when he was approached by 2 black males on foot. The resident describes the actors as approximately 18-20 years old, both 5’8”, wearing all black clothing and skull caps. One of ...

Millburn/Short Hills Chamber to Host Business Cocktail Networking Event in Downtown Millburn

MILLBURN, NJ – The Millburn/Short Hills Chamber of Commerce is the preeminent organization to advocate and promote business in Millburn Township. The Chamber organizes events throughout the year to bring together business people and organizations interested in making Millburn a vibrant community to live and work.

Led by Chamber president Rick Davis, a Millburn resident and CFO at St.

My Epic Beauty Fails

One day as I was looking around a high-end cosmetics store for a new lipstick, a “beauty expert” approached me and said that I was so stunning I should forget the lipstick, and get a lip plumper instead. At first I wondered why I needed a lip plumper if I was already so stunning. But then I thought, “Now here is someone wearing a badge that says, ‘beauty expert,’ so ...