Mortgage Blog

Updated economy news

November 7th, 2014 2:45 PM by Eric Fang

The labor market has made great strides this year, as the economy has averaged
229,000 new jobs per month in 2014, the fastest pace since 1999. However, key
details in the latest report show more progress is needed.

The October Jobs Report showed that 214,000 jobs were created, below the 235,000
expected. Of importance to note: a big percentage of the gains were concentrated
in retailers, restaurants and bars—all of which typically increase ahead of the

On the surface, there was good news as the Unemployment Rate fell to 5.8 percent
from 5.9 percent, reaching its lowest rate since July 2008. However, wage growth
remains tepid, as hourly earnings rose by only 3 cents, with the year-over-year
increase at just 2 percent. And the Labor Force Participation Rate (LFPR) came
in at 62.8 percent, still near the lows last seen in 1978. The LFPR measures
the proportion of working-age Americans who have a job or are looking for one,
and it should be moving higher in a recovery.

In housing news, research firm CoreLogic reported that home prices, including
distressed sales, rose at an annual pace of 5.6 percent in September. This was
the slowest annual rate since August 2012, and well below the 11.8 percent gain
recorded this past February. Housing price gains are definitely trending lower
after their meteoric highs last year.

Posted in:General
Posted by Eric Fang on November 7th, 2014 2:45 PM



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