The nation's unemployment rate dipped to 4.5% in February, as employers added 97,000 jobs to their payrolls, close to economists' forecast for a gain of approximately 100,000, the Labor Department reported March 9. Unemployment fell despite bad winter weather that forced construction companies to slash 62,000 jobs, the most since 1991.
The Labor Department also reported that the number of laid-off workers filing unemployment claims fell by 10,000 for the week ended March 2. The decline provided a break from a recent rise in layoffs stemming from a weakness in the housing and auto sectors.
Former Federal Reserve Chairman Alan Greenspan said there was a "one-third probability" of recession in the United States this year, according to a March 6 interview with Bloomberg news service. His comments contrasted with those of current Federal Reserve Chairman Ben Bernanke, who said that the Federal Reserve continues to foresee "moderate growth going forward."
The nation's trade deficit narrowed slightly to $59.1 billion in January, down 3.8% from a December deficit of $61.5 billion. Exports of goods and services rose by 1.1% to an all-time high of $126.7 billion in January, reflecting gains in sales of airplanes, computers and farm products.
Rates on 30-year mortgages fell to their lowest level since mid-December, as investors moved to the safety of bonds after last week's stock market turmoil. Typically, more money flowing into the bond market makes more money available for mortgage lending.
This week look for updates on producer prices on March 15 and consumer prices on March 16. (abc)
Bolstered by bonus payments to high-income executives and pay raises for federal workers, personal incomes rose 1% in January, the largest advance since a 1.3% jump in January 2006, the Commerce Department reported March 1. The extra income helped support a better-than-expected 0.5% increase in consumer spending, the major force driving the U.S. economy.
The Institute for Supply Management's manufacturing index, which measures the nation's manufacturing activity, climbed to 52.3 in February, beating Wall Street's expectation of 50 and January's reading of 49.3. A reading above 50 indicates growth in the sector.
Sales of existing homes in January rose 3%, the biggest one-month increase in two years, the National Association of Realtors reported February 27. Median home prices, however, fell 3.1% from a year ago, the sixth straight monthly decline.
Sales of new homes dropped 16.6% in January, the sharpest monthly decline in 13 years, the Commerce Department said February 28. Yet, the median sales price of a new home rose $400 to $239,800 in January. The backlog of unsold new homes rose from a 5.7 months' supply in December to a 6.8 months' supply in January.
Meanwhile, the New York-based Conference Board said its Consumer Confidence Index increased to a rousing 112.5 in February, its highest level in five years. The better-than-expected gain reflected increased optimism about jobs and business prospects.
For the week ended February 28, interest rates on 30-year mortgages fell for a second straight week to the lowest level since the start of the year.
This week look for updates on February unemployment and the trade deficit on March 9. source-abc.
The slowdown of 2006 has thankfully come to an end.
Buyers and sellers have found a common ground and the market seems to be moving along again. A bit slower than we are used to but better than last year.
Rates are still low and are about the same as this time last year.
I feel the difficulty you may feel when it comes to buying and selling. I have friends who have been "sitting" on the sidelines or have homes that wont sell.
It has been tough on us all.
Keep your head up and look to the future. You live in one of the greatest economies in the world. (California is the 5th largest in the world)
Gary Watts is a leading economic forecaster who has been correct in estimating the California economy for years and he also predicts a slow but steady turn for the better.
So get out there and get a great deal on a home. They are everywhere.
I am there when you need me for any real estate questions.
Chuck Davis 714-625-8954.
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