Unemployment Rate Dropped; Economy Recovering

According to the Labor Department, businesses around the nation have added 146,000 new jobs! As a result, the unemployment rate has dropped from 7.9% to 7.7%. This rate is the lowest that it has been since December 2008 when President Obama took office.

There was concern initially that businesses would slow down their hiring out of fear of the federal budget's "fiscal cliff" and what it might do to next year's economy, but this appears to not be an issue. Also, Hurricane Sandy did not have as big of an effect on the job market as originally anticipated. The holiday season seems to be keeping moods high as Christmas sales are booming. As a result, most of November's job gains were in clothing, electronics and general merchandise stores.  However, there were declines in employment for manufacturing, construction, and government workers. The average hourly wages only rose 1.7% over the past year and the average worker continues to work 34.4 hours a week.

Economy analysts were expecting weaker growth because of the storm but are currently increasing their forecasts due to the better-than-expected jobs performance. The economy is slowly but surely recovering. And of course, the stronger the job market, the stronger the housing market.

If you are currently doing well and in need of a new home, let Quest Loans know! Don't wait until the new year, take advantage of the Christmas Mortgage Rates we have available for a limited time! Call for more information 888-883-5252!

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Unemployment Rate Falls

Typically when there is good news regarding employment, it has a positive effect on the mortgage industry as well. The economy has created 114,000 new jobs which caused the unemployment rate to fall to 7.8% as of September! More jobs means more money and, hopefully, fewer foreclosures! However, a lot of businesses are currently not hiring because they are waiting to see how the election plays out in November. Despite this, economy is slowly continuing to bounce back!  If you are reaping the benefits and are thinking about purchasing a home in the near future, Quest Loans would like to help! Call us at 888-883-5252 for assistance!

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Outlook for the Housing Market in 2012

As of December 2011, unemployment rates fell to their lowest level in three years with the addition of 200,000 jobs. This means good news overall for the real estate market since the country's economy is beginning to improve. This recovery is essential for the housing market and it is expected to continue throughout 2012. As we reported earlier, the Fed has announced that interest rates will not be raised until 2014 in the hopes of continuing in this economy recovery. The interest rates are currently at historic lows and are expected to stay that way to ensure a slow but steady rise by the end of the year. Therefore, taking out a mortgage is a very affordable thing at this time.

Predictions for the 2012 housing market include these continued low interest rates as well as the stabilization of home prices. This should lead to an increase in home sales: roughly 12% of existing homes and 74% of new homes; and there will also be a rise in inventory mostly due to increased foreclosures throughout the country. Distressed properties will make up about half of all home sales. There will also be an improved short-sale process so we can further avoid foreclosures. Homeownership rates are expected to continue to fall. Foreign and domestic investors will be likely to buy 25% of homes. And there will be an increased reliance on real estate agents in 2012. We will continue to report on these matters to see if these predictions pan out over the next year.

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Current U.S. Unemployment Rates

Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state.

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