Good news on unemployment; wages not so much…

Green Escrow Services | Work force

As the unemployment dropped to its lowest rate since 1969 – 3.7 percent – wages only increased 0.2 percent after inflation. This is not considered the norm as when the jobless rate reaches 4 percent – considered full employment – real wages generally climb faster than inflation.

One explanation is that the unemployment rate only accounts for those actively looking for work; it does not include those “discouraged workers.” When looked at in this light the percentage of the population ages 25 to 64 that is working is still lower than it was in 2007 and considerably lower than in 2000.

One ramification of this dichotomy is that while consumer spending is increasing at a fast pace, incomes are not, forcing consumers to borrow more and save less.

Interest Rates Continue to Fall – What Gives?

Green Escrow | Real Estate Market News

Seemingly defying economic logic – if there is such a thing – fixed rates on home loans continued to fall to lowest marks in almost two years. How can this be? Oil prices are very low but the economy appears relatively strong with almost three million jobs added in 2014, the most since 1999 and unemployment rates have dropped to 5.6 percent.

According to many experts (!), many of the factors holding rates down are international as the economies in many European countries and Russia remain weak.

Low oil prices, low mortgage rates, rising employment – enjoy it because the one certainty is that change will come.