Happy Friday! Brian Manning here with the weekly update. let’s get right to it. What a crazy week. Okay, so Monday of this week was quite a day, really not much to report there. Tuesday of this week, was kind of really when it started to heat up. Tuesday of this week, first of all, for housing information we got CoreLogic CoreLogic giving us info on home appreciation and CoreLogic telling us that on a month-over-month basis homes appreciated at 1.1% which is phenomenal. On a year-over-year basis homes appreciated at 8.2% So, just still really wonderful to see just a rock-solid housing market and appreciation, just you know, really strong and steady.
Also Tuesday of this week, you had Georgia get flipped and turn blue and if you look at what’s happening at the bond markets now you’re starting to see some negative reaction in the bond markets and the reason why is because the general feeling is through investors and bond investors specifically is that if you have Biden with the ability to push through what they want then that will give them the ability to push through more stimulus package and the way stimulus packages are funded is by issuing bonds. And, so potentially, there could be a flooding of bonds that goes into the market and we’re starting to see the bonds specifically the 10-year treasury, react negatively to this and we’re seeing the yield on the 10-year treasury go up. Mortgage rates, although they don’t go exactly in correlation with the yield of a 10-year treasury going up typically, though, when you see this yield increasing that means rates are going up as well. So without a doubt, from Tuesday of this week to today we have absolutely seen an increase of rates I think in the beginning of this year that we’re in right now, we’re going to continue to see an increase of rates and I don’t think it will be out of control but it’s definitely taking place. It may calm down and it may retreat a little bit in the future, we’ll talk about that more next week, with a better interest rate prediction. But certainly, we’re seeing some impacts and ripple effects of what’s going on there.
Wednesday of this week, we got ADP, so ADP is the largest provider of private, non-government payrolls in the United States and the first Wednesday of every month we get a jobs report, so for the month of December there was an expectation that ADP would tell us that we had about 160,000 new jobs created in the month of December. Unfortunately, instead of that, we had 143,000 job losses. So, it just really went the wrong way there, as far as ADP reported.
Thursday of this week, just really sad to see the chaos that we all watch take place at the Capitol, certainly didn’t stop the stock markets. So, if you look at stocks, they’re just still on a tear but really, just certainly an unfortunate turn of events to see there. And then, Friday, we had the BLS. So today and the first Friday of every single month we get the Bureau of Labor Statistics and that gives us information on government jobs and government jobs report as well. So originally, the BLS expectation was that we see 200,000 new jobs created for the month of December, well… after ADP came out with such a stinker of a report. Kind of, the analysts expectations were revised and it was dropped down from, instead of seeing an expectation of 200,000 new jobs created in December to 65,000, well… when we get a report today it tells us that there was actually 145,000 job losses in the month of December. So, still the labor market is experiencing struggles. a lot of businesses still close down, December was a tough month and we just saw, you know, an unfortunate amount of job losses which is really rough.
If you are considering refinancing, right now is the time to talk about this as we’re seeing rates go up, capture these market lows while you can, as far as interest rates are concerned If you’re looking to buying a house, I’m around all weekend. If you have any questions, give me a call. I can run some numbers for you, send you a pre-approval, whatever you need, let me know.
Call me on my cell phone, text me, Happy Friday, hope you have a great weekend.