Jobs report shows increase of 517,000 jobs in January
The January 2023 jobs report from the US Department of Labor showed that non-farm payrolls increased by 517,000. The estimate for the month was only 187,000. The unemployment rate fell to 3.4%, which isn’t far off the 3.6% estimate. This is the lowest jobless level the country has seen since May 1969. Leisure and hospitality lead the way with 128,000 jobs added to all sectors. Business services, government, and healthcare also showed five-digit gains for the month.
This is a great report, but it goes against what the Federal Reserve is doing to cool off inflation. The Fed is raising interest rates in an effort to make it harder for businesses to borrow money, and that typically leads to greater unemployment. What we’re seeing is that businesses are more willing to take on the extra expenses and continue to add. It’s unclear how the Fed will react, but the hot jobs report has a chance to prolong their fight against inflation.
How did the mortgage market react to the jobs data?
The national average for a 30-year, fixed rate mortgage ended up 0.20% to 6.19%*. This comes as the national average ticked below 6.00% for the first time in months on Thursday.
The bond market reacted to the jobs data with an immediate sell off that spurred the mortgage market to climb higher.
How much buying power do homebuyers really have?
Home prices are starting to cool off and mortgage rates are off their peak, but is buying power back to where it was in October 2021? Buying power in the current housing market is still a bit lower than it was a few years ago, but there are several strategies home shoppers can use to afford a little more home.
Our experts have worked out four ways that home shoppers can boost their buying power in the current market. From down payment assistance programs to specific loan types, there are steps you can take to get into your dream home.
Do you already know that you’re ready to get back into the housing market? Get pre-approved** and start your journey with Guaranteed Rate.
* National average rates accurate as of 2/3/23 from https://www.mortgagenewsdaily.com/ and are not advertised rates from Guaranteed Rate.
** Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
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in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
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