Last week’s economic reports included readings on public and private sector jobs, the national unemployment rate and weekly readings on mortgage rates and new unemployment claims.
ADP: Private-Sector Job Growth Eases in December
Private-sector jobs increased by 202,000 jobs in December and exceeded expectations. November’s original reading of 60,000 new private-sector jobs was revised to 124,000 jobs.
Three and six-month average private-sector job growth rates were 159,000 and 151,000 jobs, but these growth rates fell short of 2018’s average monthly job growth rate of 218,000 jobs added.
Analysts said that private-sector job growth has settled into a more modest but steady pattern.
Non-Farm Payrolls: Public and Private-Sector Job Growth Slower in December
The Commerce Department reported 145,000 public and private-sector jobs added in December with 145,000 new jobs reported. Analysts expected 165,000 new jobs added, which was markedly less than 256,000 new jobs added in November.
Reduction in new jobs during December was likely due to slowing in holiday hiring and winter weather. Average hourly earnings for December rose by 0.10 percent and were lower than expectations of 0.30 percent growth. Slower wage growth contributed to predictions of slowing economic growth.
The national unemployment rate was unchanged at 3.50 percent in December.
Mortgage Rates, Weekly Jobless Claims Fall
Freddie Mac reported lower mortgage rates last week; the average rate for 30-year fixed-rate mortgages fell eight basis points to 3.64 percent. Rates for 15-year fixed-rate mortgages averaged nine basis points lower at 3.07 percent.
Rates for 5/1 adjustable rate mortgages averaged 13 basis points lower at 3.30 percent. Discount points for fixed-rate mortgages averaged 0.70 percent and 0.30 percent for 5/1 adjustable-rate mortgages.
Freddie Mac predicted that rates for 30-year fixed-rate mortgages will average 3.80 percent in 2020 as compared to 4.00 percent in 2019.
Weekly jobless claims fell to 214,000 new claims; analysts expected 219,000 new claims filed. 223,000 first-time claims were filed the prior week.
What’s Ahead
This week’s scheduled economic reports include readings from the National Association of Home Builders on housing market conditions. Commerce Department readings on housing starts and inflation will also be released. The University of Michigan will post data on consumer sentiment; weekly reports on mortgage rates and new jobless claims will be posted as scheduled.
For many, owning property is seen as a rite of passage. At the same time, for most people, accomplishing this dream is largely dependent on the approval of a mortgage. For this reason, it is important for people to think carefully when deciding who to ask for a mortgage. Some cities have a higher mortgage approval rate than others.
Nobody enters into a mortgage assuming they are going to fall short on their payments; however, life happens and borrowers might need a way out. In serious situations, lenders may elect to foreclose on homeowners who are unable to make their mortgage payments. Fortunately, there might be another way out. This is called a short sale.
