A stronger than expected jobs report caused the DOW to uptick and close this past Friday to 11,444. There were approximately 152k jobs created in October vs only 60k expected by some economists. Still, the Nation's unemployment rate remained at 9.6%. Also, a report stated that manufacturing is up again. The Institute for Supply Management said its manufacturing index read 56.9% in October, up from 54.4% in September. A reading above 50% indicates growth. This was the ISM's fastest pace for growth since May and the 15th straight month for growth.
Global stock markets staged an explosive rally last Thursday as the Federal Reserve announced its plans to rejuvenate the U.S. economy by purchasing more than $600 billion in Treasury bonds according to the Associate Press. The same article also stated that the Fed would buy $75 billion a month in government bonds through the middle of next year to further drive down interest rates on mortgages and other debt. The plan is to get cheaper loans to people and businesses in order to get people to spend more and stimulate hiring. The Fed said it would monitor whether adjustments are needed depending on how the economy is performing.
The San Antonio Economic Business Development Foundation expects two to four additional business investments to create about 700 jobs in the city by the end of this year. So far this year the foundation has helped recruit 11 companies to San Antonio for a total of foundation-assisted job creations to about 3500 for 2010. They also expect to create another 2500-3500 jobs for 2011 after beginning next year with about 90 active business investment prospects. More jobs means more folks working and spending money. Maybe S.A.'s job creation is one of the reasons it was reported last week that San Antonio's homeownership rate reached 69.8% in the third quarter. That's up from 65.6% percent in the same quarter in 2005. Keep in mind that whatever 'positives' happen in the San Antonio/Austin areas also help the surrounding Texas Hill Country economy. Speaking of the Texas Hill Country and surrounding areas, (including South Texas); it will benefit from the opening day of deer season this past weekend. Local feed stores, grocery stores, restaurants, motels, etc., are just some of the beneficiaries of the millions of dollars spent during this time.
Mortgage rates on 30 year fixed rate mortgages edged up this past week to an average of 4.24 percent. Still, rates are at historically low levels. Even with the Fed's announcement that it will be buying more Treasury's and MBS' (mortgaged-backed securities), rates did jump slightly. Mortgage rates had already built in the fact the Fed was going to do this. Now it is just a matter of the economy, jobs, stocks, etc., to see if mortgage will actually dip further or start heading-up. The market is so volatile, that it would be smart for cautious borrowers to act now and buy the home of their dreams in order to take advantage of the low rate environment. Don't forget, that most sellers are even more motivated to sell their homes, making this an even more attractive buyers market.
This article is for informational purposes only. Do not use it as financial advice. For questions/comments contact Tony Stevenson at 1.8..460.6990 or email: email@example.com.