The U.S. economy added 195,000 jobs in June, according to a Labor Department monthly report. The unemployment rate remained at 7.6%.
This is not a gang buster jobs report, particularly when one looks at the types of jobs added and the reluctance of employers to hire people in jobs with strong benefits and health care. However, it is perceived as better-than-expected from the financial markets, and interest rates surged again. I can only imagine what would happen if real strength reappeared.
Given the rise in real estate prices and the jump in interest rates, which could impact future buyers and demand, I am perplexed as to why more families are not listing their homes for sale. The combination of surging prices plus surging interest rates is not a sustainable combination. I have been calling for a increases in interest rates for the past year with no hesitation or remorse. I project further increases with equal confidence.
Surely, there must be pent up supply waiting to be put on the market for sale. Why not sell now, when the market is deep and listing competition limited? I have yet to derive an adequate answer to that puzzle.
July 5, 2013
Chartered Financial Analyst, CFA