With the Labor Department reporting job growth for June coming in at 288,000 new jobs, unemployment dropped to 6.1%, this is the lowest national average since 2008. This is great news for the future of our economy after Q1’s numbers coming out lower than predicted. Most of jobs created last month were in the services industries. Services industries had 236,000 new jobs created which is the largest gain since October 2012.
Job creation has been over 200,000 jobs for five straight months now; this is the first time numbers have been this high since the late 1990’s, which was caused by the technology boom. The average job creation for the year to date has been 231,000 jobs each month. This is the highest six month average since 2006.
This jobs report has caused the stock markets to surge this morning as it appears that the economy may be growing more robust than previously thought. Unfortunately, good news for stocks is bad news for interest rates! Rates are up today by about 1/8% closing the week closer to 4.5%. They were 4.25% last Friday. A better economy leads to higher inflation, and allows the fed to raise short term rates, it also allows the stock markets to rise which causes money movement from bonds to stocks, all of which cause mortgage rates to rise.