The unemployment rate dropped and average 30-year mortgage rates have inched up to 3.18%. A recovering economy means rising rates so the sooner you purchase a home, the better your mortgage rate will be!
Against the backdrop of protests demanding racial justice, mortgage rates began trending upward as employment-related economic data blew past expectations.
Friday’s employment report revealed that not only did the US not lose more jobs but that 2.5 million people found employment, likely in the form of being rehired. Additionally, the unemployment rate improved to 13.3%.
While all of this points to the potential of a recovery moving faster than predicted, we still have a long path ahead. Additionally, we could see significant adjustments to the numbers as the virus’s impact on data collection, and some data misclassifications may have skewed the numbers.
In any event, the good news is welcomed and may help improve business and consumer outlooks for the future.
This week, the Fed meets to discuss monetary policy. While they may cheer the employment data, it is very likely they’ll take a tempered approach to public statements, warning that the economy has many challenges to face in the coming days and causing any rate increases also to be tempered.
So is now the time to buy for you? Purchasing a home is about finding the perfect time in your life. Click here to start your home search or take a virtual tour of Southern California Open Houses on our Facebook group.
Will Smaller Cities Grow After the Pandemic
With Facebook, Twitter, Square, Nationwide, and other organizations announcing plans to support remote working for their employees, many experts believe that small cities will benefit. In high-cost urban areas, many well-paid employees can’t afford to purchase a home. Even if their salaries are adjusted for cost-of-living, many of these workers would easily qualify for homes in lower-cost cities, and the shift could slow price increases in larger cities.
ABOUT THE AUTHOR
First Team Real Estate
Since 1976, First Team Real Estate has helped hundreds of thousands of homebuyers and sellers achieve their real estate goals.