It’s all about jobs this week. The jobs report came out today with a loss of 131,000. The private sector actually added 71,000 jobs and so the losses came from the government sector. While much of the government job loss was due to 143,000 temporary census workers being let go, the balance of the government loss came from state and local governments having to go through the same belt tightening as the private sector went through a year ago. Still, we have had positive job growth in the private sector this year to the tune of 600,000, but this is not enough to pull us off the bottom of this recession. As a result, unemployment remains basically the same.
But to every cloud, there is a silver lining. Again, for us, it’s rates. As long as we stay bumping along the bottom of this economic recovery, which right now looks to be through the end of the year, we will see abnormally low rates. The opportunity of a lifetime is still available.
This week 30 yr fixed rates remained between 4.25% and 4.5% depending on program, credit and points.