Seattle Mortgage Rates Today 1/17/13
Seattle Mortgage Rates Today 1/17/13: The bond markets were negatively affected today upon release of better than expected economic data. Last week, the number unemployment claims reached an all-time low since the beginning of 2008. It was reported by the Labor department that claims fell by 37,000 to 335,000; however, this time of year tends to offer skewed numbers and we may find them adjusted once again. What was not experienced was the typical seasonal fallout of jobs.
Also affecting bond markets are numbers for housing starts. The month of December reported an increase of 12.1%, reflecting overall starts of 954,000—65,000 more than anticipated. This is the highest level since the middle of 2008. Gauging future homebuilding, building permits were also at its highest in over 4 years.
Is the economy improving? Yes, albeit at a snail’s pace. Job growth continues to improve but is quite far off from where the market needs to be. Unemployment, currently at 7.8%, is still above the 6.5% needed to push the economy forward. Given the gains in employment of just 2% in the past 5 years, it will be some time until the 6.5% threshold is met.
Although there was an uptick in rates today, we are not out of the clear. Once again, this reflects the typical reaction in the marketplace to any positive news. There are other issues to be dealt with yet to come.