Where are you?

/in /by

Question of the week: Where are you?

Answer: We are in New York City for long Labor Day weekend. Those ardent readers of the personal section of the WR&MU know we recently signed a lease for an apartment for our daughter and three friends for their college housing. Now we need to obtain the necessary items to convert a vacant unit to a home for the young women.

“We’re helping my son/daughter move into dorm/apartment…” translates to, “We’re buying stuff for our son/daughter…”

Have a nice long weekend everyone!

Have a question? Ask me!

More workers, more pay, more pressure. Those are the take-aways from today’s labor report for August. Over 300,000 new jobs were added to the economy in August. The unemployment rate increased from 3.5% to 3.7%, mainly because the participation rate increased (percentage of eligible workers that are working or looking for work). While more are looking for work, job openings outnumber available workers by almost double. This puts more upward pressure on wages, which in turn puts more pressure on employers to raise the costs of their goods and services; in other words, wage driven inflation. Wages increased again last month and are up 5.2%, still lagging behind inflation.

The data seems to ensure a rate hike by the Federal Reserve to its benchmark interest rate of 0.75% when it meets on September 21st. Investors are pricing this rate increase into the markets.

Rates for Friday September 2, 2022:  Rates are up for the third consecutive Friday, at or near post-pandemic highs, as a result of the economic data and outlook.

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS LOCKED FOR 45 DAYS FOR PURCHASE TRANSACTIONS:

30-year conforming                              5.55%          Up 0.125%

30-year high-balance conforming        6.00%          Up 0.125%

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down with 740 FICO score for purchase mortgages.

Schools have started, Labor Day weekend is here, summer is coming to an end. This weekend also brings Leslie and my anniversary. Twenty-eight years of marital bliss for me and tolerance for her…

Have a great week,

Dennis

Past Weekly Rate & Market Updates can be found on my blog page at my website www.DennisCSmith.com/my-blog