ADP Jobs drop; home prices rise
Posted May 2, 2013
What a week for economic data points! While many eyes are focused on Friday’s jobs report it was the jobs number that preceded Friday’s data which delivered a disappointing number on Wednesday. The ADP private sector jobs report gave us 119,000 jobs for April, which was a number that fell well below economists’ expectations and provided further concerns that the labor market is still very weak. To add insult to the April data the March report was revised lower by an additional 27,000 jobs.
The 10-year yield moved south on that negative data dropping to a yield of 1.62 on Wednesday. Mortgage rates have also moved lower, becoming the beneficiary of recent weaker than expected economic data.
On the positive side for housing the Case-Shiller home price index delivered good news for February prices earlier this week. According to the report home prices rose 1.2% from January, but were 9.3% higher in year over year data. The continued improvement in prices across the nation is a welcomed sight for most in housing as the annual rise is the strongest number we have seen in seven years. Not only do rising prices help the overall strength of housing markets nationally, but they also provide much needed relief to those homeowners who are still underwater on their mortgages.
Good news for the Triangle unemployment rate. According to the latest data from the Commerce Department the overall unemployment rate in the Triangle dropped in March to 7.1%. That number is down from a 7.5% reading in February.