A funny thing happened on the way to our economic recovery. Nobody got a damn job! It’s actually not funny but we all have been “getting sold” by the media as well the government agencies & bureaucrats (read Bernanke, the other Fed Presidents, Congress and President Obama) that things are getting better. This morning though we found out through the monthly report on employment data that things are not better after all, and they may be getting worse.
Today’s monthly jobs report says quite a bit. In a nutshell it confirms a few bad things.
1. People are getting hired part time, without benefits.
2. People are QUITTING THE JOB MARKET. They need work but it’s so hopeless they quit looking.
3. People who have jobs are FREAKED OUT.
4. Higher interest rates over the last 4 months are starting to clobber construction jobs.
Don’t take my word for it? Google September Jobs Report, then come back. I’ll wait…
So can anyone tell me what happens next? I can’t see a scenario where the economy takes off like a shot from here. Frankly, that might be a good thing. Remember that from a real estate and stock market standpoint, we have had a couple of good years with rising prices and the crash of the stock & housing markets of 2008 still fresh but a memory. That likely can’t continue in the long run. Some could argue for a financial crisis due to some of these forces, but that seems unlikely as well.
So if you feel good about your job, buy that home. Rates aren’t likely to drop a ton from here and prices are not likely to go down a ton either. Finally, home loans won’t be getting easier to get approved anytime soon. But if you are worried about your savings, your job security and the big picture..I wouldn’t argue with you about hanging tight either.
