FROM OUR BLOG
February 5, 2023

The latest jobs report released on February 3, 2023, showed a staggering 517k new jobs added in January, much higher than expected. This report is regarded as the most highly-regarded measure of employment strength in the economy. A strong economy and tighter Fed policy (as implied by the strong jobs numbers) are bad for interest rates. The impact of the jobs report caused a small jump in mortgage rates, although rates have generally been settling down and shifting into a sideways pattern since the fall of 2022. If inflation continues to decelerate and if the economy weakens, interest rates would likely continue to decline. However, more data like today’s jobs report would delay that progress. In addition to the impact of the jobs report on interest rates, home price indices (S&P Case Shiller and FHFA) show that prices are declining roughly in line with expectations in month over month terms, but still remain higher than normal in annual terms. The real estate market is a complex system that is impacted by various factors, including economic data releases like the jobs report. It’s important to stay informed and understand the impact of these events on the real estate market and your financial decisions.

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Sierra Pacific Mortgage Company, Inc.

Sierra Pacific Mortgage NMLS# 1788. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York.  To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.