Mortgage Blog

Stock market is votile

April 6th, 2018 12:24 PM by Eric Fang

Still we do not have to watch it everyday. Though I do have it, since I check the bonds level for the mortgage rates. That's my job. Then I will check the stock prices.

The bonds still kind of hard to cross 3% level. The recent retreat is good thing for the market(actually), good for builder stocks as well. LGIH was up again, can not believe it reached $57 level beginning of March. And now it is over $70.

Job creation slowed in March,  mainly because of the weather, or the stock market, or whatever. I think the growth might slow a little bit in the next a few months.

Here are the reports on the market today:

Just 103,000 jobs were created in March, much lower than the 175,000 expected, the Bureau of Labor Statistics reported. February's report was revised higher to 326,000 new jobs from 313,000, while January was revised lower to 176,000 from 239,000. The Unemployment Rate was unchanged at 4.1 percent.

Average hourly earnings came in at 0.3 percent, higher than expectations. Annual wage growth ticked up to 2.7 percent in March from 2.6 percent for the 12 months ending in February. The first quarter of 2018 also saw higher job growth than the same period last year, as an average of 202,000 new jobs were created in the first three months of 2018 compared to 177,000 in 2017. Overall, despite the disappointing headline number, there was some positive news in the report.

In housing news, home prices continued to push higher in February due in part to the ongoing theme of limited housing supply on the markets. Research firm CoreLogic reported that home prices, including distressed sales, rose 6.7 percent from February 2017 to February 2018 and were up 1 percent from January to February. Looking ahead, CoreLogic forecasts that home prices will rise 4.7 percent from February 2018 to February 2019.

Extreme volatility continued in the markets this week, as uncertainty regarding tariffs and a trade war with China caused wild swings in Stocks. Mortgage Bonds were stuck in a sideways trading pattern, while home loan rates remain historically attractive.
Posted in:General
Posted by Eric Fang on April 6th, 2018 12:24 PM



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