Strong Jobs Growth in October Fails to Lower Unemployment
Private employers add 159,000 positions; Government employment cuts continue; Unemployment flat at 9.6% – Daily Mortgage Rate Update for November 5th, 2010
After all the other news this week, the Fed meeting results, more quantitative easing, etc., I believe that Wall Street actually yawned this morning at 8:30 when the Employment Situation report was released. Traders are looking for signs that the Fed might change directions, and this report, while exceeding expectations, didn’t have the kick needed.
Non-farm employers added 151,000 positions in October, a substantial jump from declines previously announced for August and September. Gains were strongest among private, non-government employers who added 159,000 positions. This sector has been viewed as key to moving employment in the economy forward. Government is unlikely to increase its hiring any time soon, especially with the potential for gridlock between Capitol Hill and the White House.
In addition to the strong October gains, August and September results were revised higher, erasing 90,000 prior job losses in those months.
These results were not strong enough to move the 9.6% unemployment rate.
Mortgage pricing has opened weaker this morning, and is likely to remain week throughout the day. Prices for most rates have risen by about 3/8 point. It is important to note that today’s results are a single data point following a large number of less positive data. This provides some support to the strategy of floating longer term rate locks. I would suggest locking rates on loans due to close within 30 days. I don’t feel we’ve seen the last of yesterday’s pricing levels, though. It is still safe to float longer locks.
Next week will be much quieter than this from an economic data perspective. We will see significant tests of Treasury pricing, with $72 billion going into the hopper. Apart from that, there’s not much to see.If you have questions regarding Rhode Island Refinance Rates, or whether or not to lock your loan, please don’t hesitate to contact me by cell at (401) 263-8655. Have a great day!
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Weekly Recap for October 25th-29th
Dan Hartman is a Senior Mortgage Advisor with Province Mortgage Associates, and serves as an Adjunct Professor of Finance and Economics at Roger Williams University and the University of New Haven. He has been helping homeowners and homebuyers with their mortgage questions for over 10 years.
November 5, 2010 by Dan Hartman · 1 Comment
I have worked as a residential mortgage advisor since February of 2000 and a part of the founding team here at Province Mortgage. We believe that by doing right by a family today, we can create a relationship for life, and, hopefully, and ambassador who will share the experience with others. It is our team of professionals that helps us to create this experience.
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[...] report. Additions of 73,000 private payroll jobs, and 60,000 total jobs were predicted. The actual results of the employment situation report showed 159,000 private payroll jobs added, and 151,000 total jobs, meaning the prediction fell [...]