Friday, February 03, 2006

Nice Employment Numbers Today

The unemployment rate dropped from 4.9% in December to 4.7% in January, which was better than expected. Additionally, non-farm payrolls were up more than expected. Although you would think that decreased unemployment would be a good thing for housing, it probably isn’t. This is because the better than expected numbers will give the Federal Reserve more reason to continue to jack up interest rates. The Fed is thinking to themselves, as long as we aren’t putting people out of work, we can afford to raise interest rates at least one, and maybe two or three more times, in order to cool off the over heated housing market.


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