The employment numbers for June was released this morning and unemployment held at 4.5%. Payrolls grew .3% and the numbers for May were revised showing a stronger job market. All this news leads to an economy that is doing very well and thus there is no need for the Fed to lower rates this year. This all translates to higher rates for loans closing soon. The problem we have is the higher the rates the less people qualify for loans thus leading to more homes on the market with no qualified buyers. Interest rates are not however as bad you might think. We are still closing loans in the mid 6's% so when the public has time to adjust to the higher rates we will see thw surge in sales just like in the 90's when Bill Clinton was in office. Rates were about 7.5% then and houses sold everywhere. We just need time to settledown and understand why rates are where they are today. 100% loans are still where tha market is and we are closing them consistantly. VA and Rural Development loans are everywhere and other 100% loans are closing as well.

I hope everyone enjoied the holiday. We are all very fortunate to live in such a great country. Mortgage rates are however still on the rise. Tomorrow will be a big day as the new employment report comes out. Stay tuned for good or bad news. I will give a better report tomorrow as we hear the news and see how the matkets react.