Strong housing and manufacturing numbers were overshadowed by the monthly employment data, which fell well short of Wall Street forecasts and led mortgage rates lower. The May Unemployment Rate dropped to 9.7% from 9.9% in April, but this was mostly due to people dropping out of the labor market. A total of 431,000 jobs were added in May, the largest monthly increase since March 2000, but nearly all of the gains came from the hiring of temporary census workers. The private sector added just 40,000-55,000 jobs, well below the 180,000 gain forecast by economists. In other news, April Pending Home Sales were up 6% from March, the highest level since October 2009, and were likely inflated due to the April 30th expiration of the homebuyer federal tax credit. The ISM Manufacturing Index expanded in May for a 10th straight month, and production climbed 6% year-over-year, the biggest gain in a decade. Mortgage rates are remaining near their lows for the year with the 30-Year Fixed sitting at 4.375% (4.523% APR) and the 15-Year Fixed at 3.750% (4.012% APR). This week will feature $70 billion Treasury auctions along with Industrial Production, Retail Sales and the Fed Beige Book report.
Central Coast Lending is inviting everyday heroes to take advantage of their “Salute For Service” half-price* home loan promotion. This promotion offers half-price* home loans to all city, county, state and federal employees, on any purchase or refinance, now through the 4th of July. Central Coast Lending salutes the service of our Armed Forces, teachers, fire, police, CalTrans, CMC workers, and so many others. Thank you!