It would appear that things are turning the corner. At least that’s what many people are assuming since the unemployment rate dropped 0.3%. The September unemployment rate of 8.4% was lower than many expected and as a result it pushed the yields up on fixed-rate bonds. Stock markets have seen a similar rise. This will lead many mortgage lenders to bump their fixed-rates up a bit, until another set of data comes out to suggest things aren’t as rosy as they had appeared.
Most gains in the economy came in the manufacturing and construction sectors, which will be a surprise to most given the state of affairs in the auto industry. The province posting the largest gains was British Columbia. Ontario ended the month pretty neutral, with gains offset by losses in part-time work. Frankly, I will take gains in the full-time workforce over the part-time work force as it leads to a stronger economic base of consumers.
The strenght in employment will be a precursor to a rise in mortgage rates. The latest report suggests that things are improving; however, we will need to see 2 to 3 months of improvement in the unemployment figures before we see rates really start to take off. If you are going with a variable rate mortgage (or already have one) start paying attention to the fixed rates as the current rates will be gone quickly.
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