Purchase Rates Are Best Levels of the Year

17c9fc0b8617d3b53272_Screen_Shot_2014-05-13_at_8.42.15_AM.png
17c9fc0b8617d3b53272_Screen_Shot_2014-05-13_at_8.42.15_AM.png

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:

You May Also Be Interested In

Sign Up for E-News

Millburn/Short Hills

Millburn Recreation Accepting Memberships for Pool, Tennis and Golf

February 19, 2018

MILLBURN, NJ - The Millburn Township Recreation Department announced that it is accepting memberships for the township pool, tennis and golf facilities. The memberships are available to all Millburn Township residents and the applications are available online.

The membership application can be accessed at http://www.twp.millburn.nj.us/DocumentCenter/View/3258 or go ...

Millburn Police Investigate Theft by Nordstrom Employee

February 14, 2018

Press Release February 13, 2018

 

On February 6, 2018 Millburn Police Officer Royce stopped a 2009 Jaguar XKR as it exited the mall for having no front plate. The investigation led to the arrest of 50 year old Christopher Garibian of Morristown on an outstanding traffic warrant out of Morris Township. Mr. Garibian was placed under arrest, issued summonses, and released after posting ...

AtlantiCast

AtlantiCast: Episode 12

On this week’s episode of AtlantiCast, decade of excellence makes headlines, as Atlantic Health’s place on Fortune Magazine’s 100 Best Companies to Work For List leads off the newest episode of AtlantiCast. Also on this week’s show, check out the newest “hybrid” operating room at Morristown Medical Center and find out how Atlantic Health is helping local ...

Upcoming Events

Carousel_image_6bc32732b6e5b46f0b03_f28fee57f494e6f4658c_10943684_896744083691504_4506070169799302056_n

Fri, February 23, 9:00 AM

The Cora Hartshorn Arboretum and Bird Sanctuary, Short Hills

Winter Break Camp at the Cora Hartshorn Arboretum ...

Education Green

Carousel_image_8429e76bd8adfbc48ca8_0dac551c96548b6313da_met_orchestra

Fri, February 23, 12:00 PM

Millburn Free Public Library, Millburn

Metropolitan Orchestra of NJ Duet at Millburn ...

Arts & Entertainment

Carousel_image_4f8324cc0a175d48b73e_bbc4a05ee6841cf55043_martamcdowell-photo-by-marco-ricca

Sun, February 25, 2:00 PM

Greenwood Gardens, Short Hills

All the Presidents’ Gardens Talk & Book Signing ...

Home & Garden

Carousel_image_61e402c79011d14d92ba_b01211242c63812560cd_networking

Tue, February 27, 8:15 AM

Congregation Bnai Israel, Millburn

JBN Presents: Women's Networking in Millburn

Business & Finance

Tullamore Dew Whiskey Dinner at St. James's Gate in Maplewood on Feb. 27

February 23, 2018

Join Tullamore Dew and St. James's Gate for a 5 course whiskey dinner on Tuesday, Feb. 27, at 7 p.m.

5 courses with 5 whiskies.

The menu is as follows:

Sea Urchin 2 ways
Scallop crudo in shell
Whiskey injected oysters
Squid ink gnocchi, head on prawn and kobe beef
Whiskey creme Anglaise filled chocolate dipped ricotta doughnut

Call 973-378-2222 to reserve your ...

Millburn Township Announces NJLM Louis Bay 2nd Future Municipal Leaders Scholarship Competition

Millburn Township Mayor Cheryl H. Burstein is proud to announce the NJLM Louis Bay 2nd Future Municipal Leaders Scholarship Competition for high school juniors and seniors planning to continue their education after high school. Three state winners will receive a $1,000 scholarship and their essays will be featured in the New Jersey League of Municipalities magazine. We are inviting all Millburn ...

Paper Mill Playhouse Announces the World Premiere of 'Unmasked'

Paper Mill Playhouse (Mark S. Hoebee-Producing Artistic Director, Todd Schmidt-Managing Director), recipient of the 2016 Regional Theatre Tony Award, announced today the world premiere of UNMASKED, which will feature some of Andrew Lloyd Webber’s most iconic work and the stories behind its creation, along with new music and memories from his extraordinary life and career, will open its ...