FEATURED TOPIC
Jobs Recovery Stalls, Mortgage Rates Drop
(article by Dan Green – www.themortgagereports.com)
The jobs recovery appears to have stalled. For rate shoppers nationwide, it’s good news. Mortgage rates are dropping.Weak Jobs Data Pushes Mortgage Rates LowerLast Friday, in its monthly Non-Farm Payrolls report, the Bureau of Labor Statistics reported that the U.S. economy added exactly zero new jobs in August. The national Unemployment Rate held steady at 9.1 percent.Despite the “zero” reading, though, the overall jobs reading was in the red. This is because the BLS issued revisions to its June and July data that adjusted the previously-reported figures down 58,000 jobs. Economists had expected a monthly reading of +75,000. Plainly, their estimates missed. The weaker-than-expected data fueled a stock market sell-off that pushed stocks down 2.5% and spurred a bond market rally. Mortgage rates have cut new all-time lows.Job Growth Is Tied To Mortgage RatesJob growth matters to economic growth, and economic growth matters to mortgage rates.Here’s just a few of the benefits more workers have on the economy :More workers on payroll means more payroll taxes paid. This helps local, state and federal governments meet budget. More workers mean fewer mortgage delinquencies. More workers means more consumer spending, which comprises 70% of the economyThese 3 elements push the U.S. economic engine forward which, in turn, spurs additional spending by business, consumers and government, and, therefore, even more job growth.
A slowing, jobless U.S. economy is one reason why mortgage rates have been so low lately. An improving economy would erase that. Wall Street knows it. It’s why this week’s presidential address was so hotly anticipated — the promise of job creation has long-reaching influence on the bond market.Get Mortgage Rates While They’re Still LowIf you’re looking for a home, or comparing rates between lenders, finish up your shopping soon, friends. Mortgage rates are low today and low rates can’t sustain — not at the current levels anyway. Mortgage rates are bound to rise and, when they do, they will likely rise quickly.
TERMINOLOGY BREAKDOWN
Periodic Payment Cap
A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or loan payments may increase or decrease. In upward rate markets, it protects the borrower from large increases in the interest rate or monthly payment at each adjustment period.
PUD (Planned Unit Development)
A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.
USELESS FACTS, QUOTES & THE PITCH
Good Night, Sleep Tight
In Shakespeare’s time, mattresses were secured on bed frames by ropes. When you pulled on the ropes the mattress tightened, making the bed firmer to sleep on. Hence the phrase……… “goodnight, sleep tight.”
Cockroaches
Cockroaches can flatten themselves almost to the thinness of a piece of paper in order to slide into tiny cracks, can be frozen for weeks and then thawed with no ill effects, and can also withstand 126 g’s of pressure with no problem (people get squished at 18 g’s).
Grapes
Grapes EXPLODE when you put them in the microwave!
Anatidaephobia
Anatidaephobia is the fear that somewhere in the world, there is a duck watching you.
QUOTES
Good teaching cannot be reduced to technique; good teaching comes from the identity and integrity of the teacher.
~ Parker J. Palmer
Not everything that is faced can be changed. But nothing can be changed until it is faced.
~ James Baldwin
THE PITCH
If you are looking to refinance, buy a new home or have friends or family who are looking to do so, remember, Grant Porter is in the business and is excited to work with you! Give me a call or send me an email soon.
Grant Porter
grant@columbiamortgageinc.com
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w: 208.389.4709
c: 208.371.1712
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