Unemployment Report Moves Mortgages!

The un-employment report for August was released this morning, and the numbers weren't good. The forecasters were looking for a creation of a few thousand jobs. What they got was a loss of almost 100,000 jobs.
What this job loss shows is that although other economic numbers are indicating a strengthening economy, jobs aren't being created- or even maintained! If jobs aren't created (there have been over 500,000 jobs lost since the 1st of the year) then the fewer consumers will be able to afford what ever goods and sevices are available. Eventually, since the consumer is what has been driving the economy for the last couple of years, our national economy will slide back into recession.

I've said all that to say all this!

Without the strength of new jobs, interest rates must stay low. It is only one of only a few tools that the gov't has to change the course of the economy.

Rates this a.m. are down by about an eigth in rate from yesterday.

Posted by bruce at September 5, 2003 11:56 AM | TrackBack