AgentIndustry News

Real estate rates retreat on jobs report

Inflation threat diminishes as wage growth slows
Published on Jun 2, 2006

Today's news of slowing job and wage growth has mortgages in retreat from another run towards 7 percent, and the 10-year T-note down to 5.01 percent from a 5.2 percent May high. A Fed pause at its June 29 meeting is again a medium probability. The employment numbers provide substantial support for Federal Reserve Chair Ben Bernanke. In the last month he made plain his belief in a soon-ahead inflation-dampening economic slowdown, and his desire not to overdo the Fed's 2-year, 16-hikes-so-far campaign. For his pains he has been widely criticized as an inflation-fighting pantywaist. News that May payrolls and wages grew by only one-third of forecast is exactly what he needed.  The purchasing managers confirmed a May cooling, down from 57.3 to 54.4, and commodity prices backed down -- all but the one that matters, oil still $70-plus. The most accurate housing-market numbers come from OFHEO's House Price Index, suffering only from time delay: 1st-quarter nationwide home-price appreci...

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