Home prices and job creations were on the up and up earlier this season.
Home Prices Sparkle and Shine
In housing news, year-over-year home price gains continued to shine, according to CoreLogic, a leading provider of consumer, financial and property information. Home prices, including distressed sales, rose 6.4 percent in September 2015 compared to September 2014. This followed a sparkling August 2014 to August 2015 increase that also was well above 6 percent. CoreLogic forecasts prices will continue to rise through this time next year, although the percent increase is not expected to be quite as high.
Jobs Creation Rebounds
The October Jobs Report shined with 271,000 jobs created, well above expectations. The unemployment rate also dropped to 5 percent.
After a disappointing September Jobs Report and other mixed economic data, the Fed had left the benchmark Federal Funds Rate unchanged at its September and October meetings. However, if strong employment numbers continue, that may be just what the Fed needs to take action at its meeting later this month.
Why is this important to homebuyers? The Fed Funds Rate is the rate banks use when lending money to each other overnight. When the Fed does increase the Fed Funds Rate, it’s possible home loan and other consumer rates may rise as well, depending on the markets and other economic conditions.
The Fed will continue to monitor employment trends and other economic data over the next few weeks to watch for signals of a strengthening economy.
For now, home loan rates are still in attractive territory. If you have any questions about housing and home loans, please don’t hesitate to contact me.