The state’s unemployment rate fell to 8.5% in June, according to figures released Thursday by the state’s Employment Development Department. That’s down from 10.6% in June 2012, the steepest decline by any state during that time period.
It’s not even. Some parts of the state have double-digit unemployment rates. Among the top five worst cities for unemployment, Mendota in Fresno County and Westmorland in Imperial County tied for the highest rates, at 33.9%.
Also, the sectors are uneven. Many of the jobs created are in lower paying jobs- many part time. Companies are still reluctant to hire full time.
Still it bodes for more good news for housing. We need increases in our average income rates to sustain recovery. When the hedge funds leave, we need people earning more money so they can qualify for higher rates.
Los Angeles actually saw their unemployment rate rise from 9.6 to 9.7. So did Orange, San Diego and the Inland /empire see their rates rise.
Rates are slowly drifting upward. They have risen ½ % point since the lows of last fall. People have gotten too used to low rates and don’t get that this is historic and not normal. The federal reserve has been artificially keep in g interest rates low by buying up 10 year bonds. This is the rate that determines mortgage interest rates., Just the announcement that they are planning –just planning- to end this has started the upward spiral. They have not said if they will stop buying all at once or gradually.
Read more on Mortgage Interest rates heading higher…
Looks like buyers are back. The emotional sentiment that drives housing is definitely on the positive side. In addition the lack of inventory has driven prices up so 1.3 million less people are upside down. So, sellers are back. The problem is without enough inventory, this can’t sustain itself. Even though building is starting to ramp up, it takes 2 years from permit to house.
Read more on New Home Sales jump to 2 yr high…
In an effort to boost the housing market, the federal reserve has taken a new and unusual step. Instead of merely buying treasury bonds to lower mortgage rates, it is now going to buy mortgage backed securities. You know them- the toxic ones that caused the problem in the first place.
Read more on More fed meddling…
Not only are housing prices up, but there are other signs as well.
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