George L. Duarte

Mortgage Loans Fremont California Horizon Financial Associates

  • Home
  • About
    • About
    • Awards
    • Privacy Policy
    • California Privacy Notice
    • Accessibility Statement
  • Reverse Mortgage Library
  • Resources
    • Real Estate Corner Radio Show
    • VA Loans
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
    • Closing Costs
    • Loan Programs
    • Living Trusts
  • Reviews
    • Video Testimonials
    • Reviews
    • Write a Review
  • Apply Now
  • Contact

November 2012 Non-Farm Payrolls Report May Show Hurricane Sandy Effects

December 6, 2012 by George Duarte

Non-Farm PayrollsFloating a mortgage rate? Consider getting locked Thursday.

ADP released its November 2012 Employment Report Wednesday in which the payroll-processing firm reported 118,000 new jobs created last month.

The company said the service sector created 114,000 new positions, the construction sector created 23,000 new positions, and goods-producing businesses created 4,000 new jobs, among others. There was a 16,000 decline in manufacturing employment.

ADP’s monthly Employment Report can influence mortgage rates. This is because it’s typically released during the same week as the Non-Farm Payrolls report from the U.S. Bureau of Labor Statistics, and can sometimes provide a preview.

The Non-Farm Payrolls report — more commonly called “the jobs report,” is a sector-by-sector breakdown of the U.S. employment situation, which includes changes in the national Unemployment Rate.

In a recovering economy, as jobs go, so goes the economy and, this month, the jobs forecast is clouded because of the effects of Hurricane Sandy.

In its Employment Report, ADP estimates that Hurricane Sandy reduced payrolls by 86,000 jobs across manufacturing, retail, leisure and hospitality, and temporary help industries.

Without Hurricane Sandy, the report may have shown north of 200,000 new jobs.

Prior to Wednesday, Wall Street expected Friday’s Non-Farm Payrolls report to show 93,000 net new jobs created in November, and no change in the U.S. Unemployment Rate. The ADP report did little to change those expectations.

Regardless, Friday’s release remains a market risk to Chicago buyers. The jobs report is closely watched because of its links to the broader domestic economy. When more workers are employed, more income is earned, and more money is spent.

This drives economic growth, of course, because consumer spending accounts for 70% of the U.S. economy and when the economy is expected to expand, mortgage rates tend to rise.

If you are currently in the market for, or are undecided about a mortgage, therefore, consider locking your mortgage rate today. If Friday’s Non-Farm Payrolls report shows more jobs created than were estimated, mortgage rates are likely to rise — maybe even sharply.

Non-Farm Payrolls is released at 8:30 AM ET.

Filed Under: The Economy Tagged With: ADP, BLS, Non-Farm Payrolls

Sidebar

George L. Duarte

MBA, CMC, CMHS
Call 510.377.9059
Fremont, CA

California DRE Corp Lic no. 01032295
DRE Personal Brokers Lic. No. 00943635
NMLS Corporate Lic. No. 302358
Personal Lic. No. 302219

Horizon Financial Associates LogoView Lending CertificateNAMB Member Certificate

Get a Rate Quote
Mortgage Refinance Companies
NAMB
Proud Supporter Of Our Military
CMC Logo

Stay up to date with the latest news to your inbox!

No spam ever and you can unsubscribe anytime.





Horizon Financial Associates BBB Business Review

Connect with Me

Browse Articles by Category

Mortgage Pros2019 Best of Fremont2017 Best of Fremont2016 Best of Fremont

See More Awards →

Recent Articles

  • The Required Steps For A Smooth Mortgage Refinance Process
  • What’s Ahead For Mortgage Rates This Week – December 4, 2023
  • Managing the Construction Loan Budget
  • Negotiating Homebuying Costs: Securing Your Dream Home at the Right Price
Horizon Financial Associates is a BBB Accredited Mortgage Broker in Fremont, CA
Equal Housing Opp
crb logo REALTOR Logo


39488 Stevenson Pl Ste. 100
Fremont, CA 94539

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in