Home prices for single family units in February increased at their fastest rate in nearly seven years. Tuesday’s report from the S&P Case Shiller index revealed that home prices rose 9.3% in February from last year. The housing market continues to be a strong point in the economy as other areas such as the labor market seems to be slowing.
The ADP employment data was released yesterday and the numbers fell short of economists’ expectations. Private companies created 119,000 new jobs in April and March’s 158,000 was revised downward to 131,000. This employment data usually is a good indication of what we are to see on the Non-Farm Payrolls which will be out tomorrow.
Another labor market report out today is the weekly jobless claims which fell sharply last week. Claims for unemployment benefits fell 18,000 which bring claims to the lowest level in five years. Employment reports and the housing market are closely linked. Job creation is needed in order to qualify consumers for a mortgage loan; however, an expanding housing market can also push mortgage rates higher.
Mortgage rates have been steadily pushing lower for the fifth consecutive week. We could see mortgage rates rise tomorrow if the employment report comes in ahead of expectations; otherwise rates are likely to remain low.
Senior Loan Officer
NMLS #191784 - 1st Advantage Mortgage NMLS #2551
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