Chicago, IL (PRWEB) July 28, 2013
On Friday, August 2nd, the Labor Department will release its monthly unemployment data for July. The Federal Savings Bank is optimistic regarding the report as it has noticed more mortgage applicants have been recently hired.
“Many prospective lien holders are applying after obtaining jobs five to six months ago, and while sometimes we shy away from these potential customers it’s nice to see more Americans becoming employed” says Nick, a bank, at The Federal Savings Bank.
According to a Bloomberg Business Week economist survey, respondents proposed a median forecast; payrolls rising by 185,000 after a 195,000 gain in June, and the jobless rate falling to 7.5 percent from 7.6 percent.
In addition to support a positive forecast on unemployment, Bloomberg cited senior US economist at Societe Generale, Brian Jones, as saying, “Hiring has been remarkably stable for the most part and theres no reason to suspect that wont continue.”
A decline in unemployment will bode well for the housing market on all fronts. More families will have incomes necessary to afford monthly mortgage payments, thus foreclosures and mortgage applications will increase. When unemployment declines incomes tend allowing individuals larger credit lines to buy more expensive homes. All of these things imply higher property values as more individuals can afford homes across all price levels.
The issue of increasing mortgage rates has raised concern at the Federal Reserve. Chairman, Ben Bernanke, however continues to believe that the economy will strength to counteract this increase.