Weekly jobless claims drop again; Bernanke speaks!
Posted February 2, 2012
Unemployment claims dropped this week by 12,000 to a seasonally adjusted figure of 367,000. That figure was slightly lower than what economists were expecting, and due to minimal discrepancy there was not much of a market reaction to the data.
Big Ben or The Bernanke as we like to call him spoke from Capitol Hill this morning – answering questions from a Congressional Panel. He indicated that the Fed had set the inflation target at 2 percent, and felt as though we would be able to keep the inflation figure below that number for the foreseeable future. This is good news for housing as this would help to maintain our current atmosphere of historically low interest rates. This stance is another good sign for the short to medium term health of conditions which influence the housing market.
You may have heard about the new Refinance Proposal which was announced yesterday from Washington – I’m going to wait to discuss any details surrounding the program until it graduates from being a just proposal. Right now it’s just that – a proposal – and due to the political rhetoric and political agendas currently floating around the proposal, there are many headwinds which have to be eliminated before the proposal becomes an actual program.
The markets are waiting for the Employment Report on Friday – it’s expected that the 8.5% Unemployment rate will remain the same. We’re not likely to have the comments from today’s Bernanke session impact the markets in any substantive way. Have a good Wednesday.