Jobless claims drop; homeowners see 'underwater relief'
Posted July 12, 2012
Jobless Claims dropped to their lowest level in four years according to the Labor Department on Thursday. Claims dropped by 26,000 to a seasonally adjusted figure of 350,000 which was the largest weekly drop the report has seen since March 2008.
Even with this slightly better than expected report, the bond market shrugged it off and the 10 year yield continued its sub 1.50 run to remain at a yield of 1.48 by late morning Thursday. It seems as though the market believes that the drop in claims had to do more with seasonal issues rather than fundamental improvements in the labor market.
Good news for homeowners across the nation who are underwater on their mortgages. According to a new report out from Core Logic, over 700,000 homeowners have had their equity positions moved from negative to positive with the recent rise in home prices seen in many parts of the country. It is estimated that there are just over eleven million homeowners in an underwater position, so while this data is less than ten percent of the current underwater pool, it’s certainly welcomed news and what is hopefully just the beginning of a very important and positive trend across the nation.