LIME REALTY GROUP is determined to help our clients and home buyers in general to understand the economic climate of the market and how best to navigate it.
Today, the unemployment figure posted. Nationally, the rate is at 5.5%. A huge and dramatic decline. Of course analysts and market watchers are predicting the FED could raise interest rates as early as June based on these supposed “solid” figures.
That’s a huge game changer for the real estate market. It will start limiting the amount of people that can currently qualify for a mortgage. It will also reduce the value of your money.
The most troubling aspect of the unemployment figures is the fact wage growth for American workers isn’t increasing at all. Even though business’ are hiring, they’re not raising the salaries of their employees.
So what’s really going on right now???
Let’s be completely accurate here. The unemployment numbers are based on the number of people who are currently receiving the benefit. It does not include people who have completely exhausted their benefit or those who have given up searching for work. Because the amount of time an individual can apply for and receive unemployment is limited, the numbers would eventually have to fall. As long as new people weren’t signing up as dramatically, the number of people actually in the system would have to fall.
Is it an accurate and fair description of unemployment in the US? Not by a longshot. Not even close. It fails to account for those who can no longer claim the benefit but still need it and those who have given up looking for work. Considering how high the unemployment rate was just last year at this time makes me think a huge group of these uncounted people are still out there. Without any help. Raising the interest rate could really hurt everyone. But we’ll see what will happen. Hopefully, there will be some resolution.
In the meantime, consider locking in a rate and start looking while the market is in good shape. Call us and we’ll help you get the ball rolling!
New episode on LimeTV soon! Keep our fingers crossed.